Coinbase announced it has agreed to acquire Deribit, the world’s leading crypto options exchange with about $30 billion of current open interest. This strategic deal significantly advances Coinbase’s derivatives business.
Coinbase noted that this deal was appealing for the following reasons:
1.) Create the Most Comprehensive Institutional Derivatives Platform – Deribit is the global leader in crypto options. Deribit’s robust options platform complements Coinbase’s rapidly growing US futures and international perpetual futures businesses, completing the derivatives offering. This is an important step toward the goal of providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform.
2.) Market Leadership & Immediate Scale – This acquisition makes Coinbase the global leader in crypto derivatives by open interest and options volume. Deribit facilitated over $1 trillion in trading volume last year across key markets ex-US, with strong demand from institutional and advanced traders. Coinbase believes crypto options are on the cusp of significant expansion, similar to the equity options boom of the 1990s – this acquisition positions Coinbase to lead this growth.
3.) Durable, Diversified Revenues, and Enhanced Profitability – Deribit will immediately enhance profitability and add diversity and durability to the trading revenues upon close. Options trading revenues are typically less cyclical than spot trading, as traders utilize options to manage risk during rising and falling markets. Deribit has a consistent track record of generating positive Adjusted EBITDA, which Coinbase believes will grow as a combined entity.
4.) Accelerating Global Derivatives Strategy – Through Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate the international growth strategy. The complementary footprint strategically positions Coinbase within the sizable global crypto derivatives markets.
In the U.S., Coinbase’s retail users can trade futures through Coinbase Financial Markets and Coinbase Derivatives Exchange. And outside the U.S., Coinbase’s International Exchange offers spot and perpetual futures products. Through Deribit, Coinbase will expand their international footprint even further, providing institutional and advanced traders access to robust options markets.
This deal marks the next significant chapter in Coinbase’s strategic acquisition strategy, building on a track record that includes:
— Xapo (2019) led to Coinbase Custody
— Tagomi (2020) led to Coinbase Prime
— FairX (2022) led to Coinbase Derivatives Exchange
— One River Digital (2023) led to Coinbase Asset Management
Deal details: Coinbase is buying Deribit for approximately $2.9 billion, comprised of $700 million in cash and 11 million shares of Coinbase Class A common stock, subject to customary purchase price adjustments. This deal is subject to regulatory approvals and other customary closing conditions and is expected to close by year-end.
KEY QUOTE:
“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives. As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”
Deribit CEO Luuk Strijers
