Coinbase To Acquire Crypto Options Exchange Deribit For $2.9 Billion

Coinbase has shared its plan to acquire Deribit, a leading crypto options exchange, for $2.9 billion. The agreement includes $700 million in cash and 11 million shares of Coinbase’s Class A common stock. The company currently eyes Deribit’s $30 billion in open interest, which is an important asset for Coinbase’s operations.

According to Coinbase, the acquisition will help improve its existing services. These include U.S. futures and international perpetual futures. The company said that by adding crypto options, it can now establish its position in the crypto derivatives sector and gain more profits.

The Acquisition Strengthens Coinbase’s Derivatives Portfolio

With this purchase, Coinbase said it will expand its services for institutional clients. The firm is certain that adding crypto options will provide more trading opportunities and draw in investors worldwide. The acquisition will allow the company to grow and hold a larger market share.

The deal follows several months of discussions. During this time, Coinbase faced competition from Kraken, which ultimately chose to buy NinjaTrader for $1.5 billion. Coinbase said it selected Deribit because the company’s focus aligns with its long-term goal.

Luuk Strijers, the leader of Deribit, said that as the leading crypto options platform, Deribit has built a strong, profitable business. He noted that the company wants to continue providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. He added that the partnership with Coinbase will enable Deribit to expand more.

Both Coinbase and Deribit are optimistic about the merger’s potential to benefit their clients. Coinbase said the acquisition will enhance its platform. It will provide additional tools for traders to manage investments effectively.

Coinbase Aims To Remain Competitive Within The Fast-Growing Crypto Market

Coinbase said the deal supports its goal to remain competitive within the fast-growing crypto market. The company believes that this purchase will provide new opportunities as it plans to offer more services to its clients.

Experts in the industry have called the deal a smart choice. They said Coinbase’s purchase of Deribit strengthens its role as a leader in the crypto derivatives market. Adding options to its services is expected to attract more institutional clients and help Coinbase increase its revenue.

As the deal moves forward, both companies are working on connecting Deribit’s platform with Coinbase’s systems. Coinbase said it will ensure the process goes smoothly, with little to no disruption for users.

In the next few months, many will be paying attention to how this acquisition affects Coinbase’s business and the wider crypto market. With a rising demand for different crypto trading products, Coinbase is ready to offer a full range of services for both new and experienced traders.