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Investing.com -- Coinbase (NASDAQ:COIN), one of the world’s leading crypto platforms, has announced a deal to acquire Deribit, the world’s top crypto options exchange with approximately $30 billion in current open interest. This strategic acquisition is expected to significantly advance Coinbase’s derivatives business, positioning the company as a leading global platform for crypto derivatives.
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Deribit’s robust options platform will enhance Coinbase’s US futures and international perpetual futures businesses, completing the company’s derivatives offering. The acquisition is a crucial step towards Coinbase’s goal of providing traders access to spot, futures, perpetual futures, and options trading on one seamless, capital-efficient platform.
With this acquisition, Coinbase will become the global leader in crypto derivatives by open interest and options volume. In the previous year, Deribit facilitated over $1 trillion in trading volume across key markets outside the U.S., with strong demand from institutional and advanced traders. The deal will also position Coinbase to lead the potential expansion of crypto options, similar to the equity options boom of the 1990s.
The addition of Deribit will immediately enhance profitability and add diversity and durability to Coinbase’s trading revenues. 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 is expected to grow as a combined entity.
Deribit CEO Luuk Strijers expressed excitement about joining forces with Coinbase, stating that the acquisition will accelerate the foundation they laid while providing traders with more opportunities across spot, futures, perpetuals, and options.
Coinbase will pay 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. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close by the end of the year.
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Coinbase to expand its derivatives offering with $2.9B acquisition of Deribit