Coinbase Acquires Crypto Options Exchange Deribit for $2.9B

Coinbase is acquiring crypto options exchange platform Deribit for $2.9 billion, the company announced Monday.

The two-part deal will see Coinbase pay $700 million in cash and 11 million shares of Coinbase Class A common stock. At Monday’s closing price of $68.87, the share component of the deal is valued at around $757 million.

The acquisition is part of Coinbase’s (NASDAQ:COIN) long-term strategy of becoming “the most comprehensive global crypto derivatives platform.”

It follows the crypto company’s 2022 acquisition of FairX for $275 million, which led to the formation of the Coinbase Derivatives unit. The crypto exchange giant is also investing heavily in institutional products.

Coinbase has been rapidly expanding its crypto strategy over the years through mergers and acquisitions. In 2019, the company acquired bitcoin company Xapo, which led to the formation of Coinbase Custody. This was later augmented with the 2020 acquisition of institutional trading firm Tagomi to form Coinbase Prime.

Earlier in 2023, Coinbase also acquired asset management firm One River Capital to launch Coinbase Asset Management.

“This acquisition is more than just another addition to our list of M&As. It’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally,” Coinbase said.

Coinbase is known for its wide variety of crypto offerings, which include a consumer-focused exchange, an institutional trading desk, and a custody business. In recent months, the company has been making a strong push to expand its derivatives capabilities.

Coinbase is currently the largest cryptocurrency exchange in the U.S. and one of the most-used platforms globally. It is a key player in the fast-growing digital assets market.

Deribit is one of the world’s largest cryptocurrency derivatives exchanges. It offers a wide range of derivatives products, including futures, options, and perpetuals. The exchange is also known for its deep liquidity and low fees.

“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” said Deribit CEO Luuk Strijers.

“As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”