- Coinbase’s $2.9B Deribit acquisition enhances its position in the derivatives sector.
- Deribit processed $1.2 trillion in 2024, solidifying its market dominance.
- The deal includes $700M in cash and 11M Coinbase Class A shares
Coinbase has decided to purchase the crypto derivatives platform, Deribit for $2.9 billion. The acquisition strengthens the position of Coinbase in the U.S. crypto derivatives market. The deal involves $700 million in cash and 11 million shares of Coinbase Class A common stock.
Coinbase faced off rival exchange, Kraken, in a long bidding war to acquire Deribit. Kraken decided to purchase NinjaTrader, a U.S.-based futures platform, for $1.5 billion. The acquisition of Deribit by Coinbase is one of the largest transactions in the crypto industry.
Deribit has experienced substantial growth since it was founded in 2016. In 2024, the platform traded $1.2 trillion, which marked a 95% increase from the previous year. The merger between Coinbase and Deribit is well placed to dominate the global crypto derivatives market.
Deribit Acquisition Boosts Coinbase Position
The acquisition solidifies the position of Coinbase in crypto options and futures. Coinbase intends to offer a comprehensive product lineup from spot, futures, perpetuals and options. The deal matches the prevalent industry trends which include increased institutional participation in crypto derivatives.
Coinbase and Deribit have emphasized the potential for growth in future. Deribit CEO Luuk Strijers stressed that the acquisition will enhance trading opportunities. The acquisition could transform the future of the crypto derivatives market.
Crypto-Related Acquisitions Trend
This deal comes amid a larger wave of crypto-related deals. Kraken’s purchase of NinjaTrader and Ripple’s acquisition of Hidden Road demonstrate the increased demand for derivatives and financial products in the crypto sector. This trend is attributed to the favorable regulatory policies under U.S President Trump’s administration.
Coinbase has recently acquired other major companies. The exchange acquired One River Digital which now operates as Coinbase Asset Management, and Tagomi, now Coinbase Prime. These moves are part of Coinbase’s approach to expand its products beyond conventional crypto trading.
Market Implications
Industry experts believe that the Deribit acquisition will lead to further consolidation in the crypto space. However, the expansion of major players such as Coinbase, Kraken, and Ripple could diminish smaller competitors. The crypto derivatives market is set to expand due to increased institutional demand for digital assets.
The Deribit acquisition marks a major step for Coinbase as the U.S plans to become the “crypto capital of the world.” It enables Coinbase to expand its market share in the robust crypto derivatives market. Moreover, the deal demonstrates Coinbase’s dedication to become a leader in the sector.