Coinbase Acquires Deribit for $2.9 Billion to Expand Crypto Derivatives

Coinbase has agreed to acquire Deribit in a $2.9 billion deal, marking the largest acquisition in the history of the crypto industry. This acquisition surpasses previous significant deals, such as Kraken’s $1.5 billion acquisition of NinjaTrader earlier this year, Stripe’s planned $1.1 billion acquisition of Bridge, and Ripple’s $1.25 billion acquisition of Hidden Road. The deal is structured with $700 million in cash and 11 million shares of Coinbase’s Class A common stock.

Coinbase expects the acquisition to be finalized by the end of this year. By acquiring Deribit, Coinbase aims to expand its offerings into the crypto derivatives market. Deribit has experienced increased trading activity due to a more favorable regulatory environment and growing interest from institutional investors. Coinbase plans to leverage Deribit’s strong presence and professional client base to accelerate its international growth strategy and create a comprehensive institutional derivatives platform.

Deribit CEO Luuk Strijers expressed enthusiasm about the acquisition, stating that joining forces with Coinbase will power a new era in global crypto derivatives. He highlighted that Deribit’s strong and profitable business will be accelerated by the acquisition, providing traders with more opportunities across various financial instruments under one trusted brand. Together, Coinbase and Deribit aim to shape the future of the global crypto derivatives market.

Prior to this deal, Kraken had also shown interest in acquiring Deribit. The acquisition of Deribit by Coinbase is expected to significantly enhance Coinbase’s position in the crypto derivatives market, leveraging Deribit’s established platform and client base to offer a more comprehensive suite of financial services. This move underscores Coinbase’s commitment to expanding its international presence and providing a broader range of financial products to its clients.