Coinbase COIN has entered into an agreement to acquire Deribit, the world’s leading crypto options exchange with approximately $30 billion of current open interest. This strategic acquisition significantly advances Coinbase’s derivatives business, establishing us as the premier global platform for crypto derivatives.
Coinbase said:
We’re excited about this acquisition for the following reasons:
- Creating 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 our derivatives offering. This is an important step toward our goal of providing traders access to spot, futures, perpetual futures, and options trading – all in one seamless, capital-efficient platform.
- Market Leadership & Immediate Scale: This acquisition makes Coinbase the global leader in crypto derivatives by open interest and options volume. [2] Deribit facilitated over $1 trillion in trading volume last year across key markets ex-US, with strong demand from institutional and advanced traders. We believe 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.
- Durable, Diversified Revenues and Enhanced Profitability: Deribit will immediately enhance profitability and add diversity and durability to our trading revenues upon close. Options trading revenues are typically less cyclical than spot trading, as traders utilize options to manage risk during both rising and falling markets. Deribit has a consistent track record of generating positive Adjusted EBITDA which we believe will grow as a combined entity.
- Accelerating Our Global Derivatives Strategy: With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy. Our complementary footprint strategically positions Coinbase within the sizable global crypto derivatives markets.
In the U.S., our retail users have access to futures trading via Coinbase Financial Markets and Coinbase Derivatives Exchange. Outside the U.S., our International Exchange offers spot and perpetual futures products. With Deribit, we will expand our international footprint even further, providing institutional and advanced traders access to robust options markets.
“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” said Deribit CEO Luuk Strijers. “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.”
Transaction Details
Coinbase is acquiring Deribit for approximately $2.9 billion [3], comprised of $700 million in cash and 11 million shares of Coinbase Class A common stock, subject to customary purchase price adjustments.
This transaction is subject to regulatory approvals and other customary closing conditions and is expected to close by year-end.
Proven Track Record of Strategic M&A
This transaction marks the next significant chapter in Coinbase’s strategic acquisition strategy, building upon a successful track record:
- 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
Each of these moves has enhanced our institutional offerings, reinforcing Coinbase as a market-leading crypto platform trusted by sophisticated traders globally.
Looking Ahead
This isn’t just another addition; it’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally. We’re excited about the path ahead and look forward to welcoming Deribit into the Coinbase family as we shape the future of crypto markets together.
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