Coinbase Acquires Deribit for $2.9 Billion, Expanding Its Presence in the Crypto Derivatives Market

The exchange will transfer $700 million in cash to Deribit, making the rest of its payment in Class A stock. This may or may not delay the deal's finalization for a few months.

Coinbase has announced the acquisition of crypto derivatives exchange Deribit for $2.9 billion.

This move signals the company’s growing interest in the crypto derivatives market, having previously been rumored to be considering buying Kraken.

Coinbase Will Pay $700 Million in Cash and Stock

Coinbase is transferring $700 million in cash to Deribit, with the remaining amount being paid in Class A stock. This may factor into the timing of the deal's finalization, which is expected within the next few months.

Coinbase and Deribit first began discussing a potential partnership in late March.

The popular derivatives exchange had started considering buyout offers earlier this year. In January, reports emerged that Kraken was planning to acquire Deribit for $4-5 billion. However, these plans fell through.

Coinbase is now reportedly planning to acquire Deribit for a lower price tag of $2.9 billion. It's unclear what led to Deribit accepting a lower offer from Coinbase compared to Kraken's rumored bid.

After the reports of the Kraken deal collapsing emerged, Deribit was forced to leave Russia due to EU sanctions. This may have contributed to a lower valuation of the exchange.

Coinbase Is Expanding Into Derivatives

Coinbase is pursuing this deal as part of its broader strategy to expand its presence in the derivatives market.

"With Deribit, Coinbase becomes the #1 global platform for crypto derivatives by open interest and options volume. Deribit brings approximately $30B in open interest and $1T+ in trading volume. This is a major step in our global expansion strategy. We’re set to offer unparalleled access to crypto derivatives," Coinbase stated on X (formerly Twitter).

Coinbase, one of the world's leading crypto exchanges, is already a player in the derivatives market. The exchange began offering derivatives trading almost four years ago and recently launched CFTC-regulated XRP futures contracts.

However, this partnership with Deribit will allow Coinbase to significantly expand its capabilities in this domain.

Coinbase's share prices have recovered notably since Trump's sweeping tariffs last month. COIN has surged over 36% since April, as the exchange prepares to report its Q1 2025 earnings later today.

Deribit's executives will receive most of their $2.9 billion asking price in Class A stock from Coinbase. The latter firm will pay $700 million in cash, but will otherwise seal the acquisition deal with 11 million shares.

According to the press release, this may delay the proceedings somewhat, but the transaction “is expected to close by year-end.”

Coinbase Didn't Disclose Plans For Deribit

Moving forward, Coinbase didn't specify how it plans to leverage Deribit's resources for its own expansion plans. Still, the firm's public statements repeatedly stressed that Deribit is the world leader in crypto derivatives.

By simply taking over its user base and trading volumes, Coinbase has gained many opportunities to take over the spotlight.