Coinbase Acquires Deribit for $2.9 Billion to Expand Crypto Options Market
Coinbase's acquisition of Deribit for $2.9 billion positions the exchange to compete with major players like Binance. Analysts view this as a significant shift in the crypto trading landscape, indicating a consolidation cycle among exchanges.
- Deribit holds 85% of the global crypto options market and had a trading volume of $1.2 trillion last year.
- The acquisition makes Coinbase the largest crypto derivatives platform by open interest and options activity.
- It enhances Coinbase's international presence, where only 20% of its revenue currently comes from.
- Oppenheimer noted that Coinbase can fund the deal through stock, leveraging its public status and $8.5 billion cash reserves.
- Barclays estimates Deribit's 2024 revenue between $425 million and $450 million, contributing positively to Coinbase’s earnings.
- Regulatory approval is pending, with further details expected in Coinbase's upcoming earnings report.
- COIN shares increased by 6.58%, while bitcoin rose by 4.31% on the same day.