Coinbase Global Acquires Deribit, the World's Largest Bitcoin and Ether Options Platform, for $2.9B

The deal, if finalized, will mark one of the largest acquisitions in cryptocurrency history, significantly expanding Coinbase's derivatives offerings.

Coinbase Global (NASDAQ:COIN) is acquiring Deribit, the world’s largest bitcoin and ether options platform, for about $2.9 billion in cash and stock, The Wall Street Journal reported on Thursday.

Deribit’s options trade has an 85% market share in bitcoin, and the platform reported $1.2 trillion in trading volume for 2024.

The WSJs report comes after sources told Bloomberg last week that the deal could value Deribit at around $4 billion to $5 billion.

Both firms have informed regulators in Dubai, where Deribit holds its license, according to the report.

The acquisition will expand Coinbase’s derivatives offerings and bolster its competitive edge against rivals such as Binance and Bybit as they tap into surging demand for crypto derivatives.

Derivatives trading volumes on Coinbase soared 10,950% year-over-year in 2024, according to the company’s latest earnings report.

Industry analysts told the WSJ that the move is part of a broader trend of consolidation in the crypto sector.

Earlier this year, Kraken (NASDAQ:KRKN) bought futures platform Ninjatrader for $1.5 billion.

Deribit’s Dubai license also aligns with Coinbase’s strategy to expand into crypto-friendly markets in the Middle East.

“Deribit’s strengths in direct professional client engagement and execution within the sizable global crypto derivatives markets will complement Coinbase’s own footprint,” Coinbase said in its blog post.

The report comes after rumors of a potential Deribit acquisition surfaced last month.

Coinbase is making its most substantial move yet to accelerate our international growth strategy with the planned acquisition of Deribit, the world’s largest bitcoin and ether options platform, Deribit.

Coinbase has begun notifying U.S. regulators of the planned deal, and Deribit has informed relevant authorities in Dubai, where it holds its license, according to people familiar with the matter.

Still, there are regulatory hurdles to clear before the deal, whose terms are not yet finalized, can be approved.

The integration of Deribit’s technology and professional client base would expand Coinbase’s footprint in the large and growing global crypto derivatives markets.

Its experience in navigating U.S. regulations could aid in gaining approvals, though there are still uncertainties.

The deal also highlights the crypto sector’s maturation, with derivatives now driving a majority of global trading activity.

Once finalized, the deal will be announced and material terms disclosed in a Form 8K filing with the U.S. Securities and Exchange Commission.