Coinbase has agreed to acquire Dubai-based Deribit, a leading crypto derivatives exchange, for $2.9 billion, making it the largest deal in the cryptocurrency industry so far. The acquisition, which consists of $700 million in cash and 11 million shares of Coinbase Class A common stock, is expected to close by the end of the year.
This acquisition strengthens Coinbase’s position as a key player in the global crypto derivatives market, particularly in terms of open interest and options volume, according to Greg Tusar, vice president of institutional product at Coinbase. The deal positions Coinbase to compete with major competitors like Binance, which dominates the global crypto market. While Coinbase leads in the U.S. marketplace for cryptocurrencies, it has a smaller share of the global market, where much of the trading activity takes place on Binance.
Deribit has experienced substantial success, processing over $1 trillion in trading volume last year and maintaining around $30 billion in current open interest. This acquisition allows Coinbase to tap into Deribit’s robust business, which is known for its strong profitability and solid performance. Luuk Strijers, CEO of Deribit, expressed excitement about joining forces with Coinbase, believing that the combined entity will offer even more opportunities across spot, futures, perpetuals, and options under one unified brand.
Tusar also highlighted Deribit’s strong track record of generating positive adjusted EBITDA, which is expected to grow as the two companies integrate. The acquisition not only strengthens Coinbase’s international expansion but also diversifies its revenue streams and enhances profitability. The deal aligns with Coinbase’s broader strategy of positioning itself as a dominant player in the global crypto derivatives market.
The acquisition comes at a time when the crypto industry is benefiting from favorable regulatory support from the U.S. government. This pro-crypto stance has spurred increased M&A activity within the sector. Recently, crypto exchange Kraken agreed to acquire NinjaTrader for $1.5 billion, and Ripple announced its purchase of prime broker Hidden Road.
With the transaction structured as a cash-and-stock deal, Coinbase retains flexibility for further acquisitions. As of the end of 2022, Coinbase had $8.5 billion in cash reserves, which should provide ample bandwidth for additional strategic moves.
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