- Coinbase to acquire crypto options giant Deribit for $2.9B in cash and stock.
- Deribit’s $30B open interest positions Coinbase for dominance in crypto derivatives.
- Acquisition expands Coinbase’s global reach, especially in Dubai, Asia, and the Middle East.
Coinbase is preparing to make one of its largest moves in the global cryptocurrency market. According to WSJ, the company has agreed to acquire Deribit, a leading crypto options exchange. The transaction is said to be worth approximately 2.9 billion dollars, which includes cash to the tune of 700m and roughly 11 million shares of Coinbase Class A. Nevertheless, the transaction is yet to get regulatory clearance and others final conditions.
Deribit’s $30B Open Interest Could Strengthen Coinbase’s Revenues
Insiders in the industry indicate that this acquisition is a deliberate attempt by Coinbase to take its operations into the crypto derivatives space, which includes futures, perpetual futures and options. Deribit is well-known for its mighty presence in the crypto options market and reports an open interest of over $30 billion. In addition, Deribit’s assumed $1 trillion transaction volume in 2024 implies strong demand from institutional investors and mature traders.
By purchasing Deribit, Coinbase seeks to create a much more extensive worldwide trading platform. The platform will provide a complete lineup of trading products: spot, futures, perpetuals, and options, in a unified, highly capital-efficient structure, observers say. This goes hand in hand with the long-term view by Coinbase of becoming a single destination for all forms of crypto trading.
At the same time, market analysts observe that Deribit’s activities will likely supplement Coinbase’s own futures services in the U.S. and globally. Coinbase currently provides futures through Coinbase Financial Markets and Coinbase Derivatives Exchange. It offers spot and perpetual futures through its Global Exchange on the international front. The inclusion of Deribit would enhance its presence outside the U.S., and other professional traders would also find it encashing.
In terms of revenues, this acquisition could give more financial stability to Coinbase. Whereas in spot trading, changes in the price of a commodity often adversely affect traders, options trading is normally less affected by such variations, with options traders carrying out transactions in both a falling and rising trend. The financially consistent and positively adjusted EBITDA of Deribit is highly beneficial to pushing Coinbase’s growth strategy.
Deribit CEO Backs Coinbase Merger to Scale Global Reach
Transfer of Deribit’s operating license will give control to Coinbase, a region of Dubai that has also become a hotspot for crypto companies because of lax regulations. This will probably enable Coinbase to run its global strategy faster, particularly in the Middle East and Asia.
Even though the concluding procedures of the deal are in the pipeline, the leadership of Deribit seems hopeful. When asked why he had decided to join Coinbase, Deribit CEO Luuk Strijers allegedly stated that by joining the company he hoped to scale up his services and provide more opportunities to traders. He also stated that the merger of Deribit’s experience and exchange with the global brand of Coinbase could play a role in the future regarding crypto derivatives.
At the same time, financial gurus assume that crypto options are about to experience a significant rise, just as equity options have in the 90s. They imply that Coinbase is looking to be first during this wave; especially so with Deribit’s established platform and clientele.
Upon its completion, this deal will put Coinbase at the top of the global crypto derivatives game, thereby advantaging it over peers in one of the fastest-growing segments of the industry. The completion of the acquisition is expected to be by end of 2025 based on approval of relevant authorities.
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