TLDR:
- Coinbase acquired Dubai-based Deribit for $2.9 billion, the largest deal in crypto industry history
- The acquisition consists of $700 million in cash and 11 million shares of Coinbase Class A common stock
- The deal establishes Coinbase as a global leader in crypto derivatives by open interest and options volume
- Deribit facilitated over $1 trillion in trading volume last year with $30 billion in current open interest
- This acquisition reflects increasing competition among exchanges to dominate the growing crypto derivatives market
Coinbase has agreed to acquire Dubai-based cryptocurrency derivatives exchange Deribit for $2.9 billion, marking the largest deal in the crypto industry to date. The acquisition, announced on Thursday, May 8, 2025, consists of $700 million in cash and 11 million shares of Coinbase Class A common stock, with the transaction expected to close by the end of the year.
The news had an immediate positive impact on Coinbase’s market performance. Shares of Coinbase rose more than 5% following the announcement.
This strategic move positions Coinbase as an international leader in crypto derivatives by open interest and options volume. Greg Tusar, Coinbase’s vice president of institutional product, highlighted this in a company blog post.
The acquisition could help Coinbase compete more effectively with major players like Binance. While Coinbase operates the largest marketplace for cryptocurrency trading within the United States, it has a smaller share of the global crypto market where Binance is dominant.
🚨 Coinbase Q1 Earnings Miss
🔹 Revenue: $2.03B (missed estimates)
🔹 EPS: $1.94, down from $2.53 YoY
🔹 Stock dips 3% after-hours despite Bitcoin rally, now trading at $203
🔹 Q2 outlook lags: $600M–$680M services rev. vs. $704M expected
💥 Coinbase confirmed its $2.9… pic.twitter.com/yT304aDObJ
— Trader Edge (@Pro_Trader_Edge) May 9, 2025
Global Derivatives Strategy
Deribit brings impressive performance metrics to the table. The platform facilitated more than $1 trillion in trading volume last year and currently has about $30 billion of open interest.
Deribit CEO Luuk Strijers expressed enthusiasm about the merger. “We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” he stated.
The deal offers immediate financial benefits to Coinbase. Tusar noted that Deribit has a “consistent track record” of generating positive adjusted EBITDA that is expected to grow as a combined entity.
“One of the things we liked most about this deal is that it’s not just a game changer for our international expansion plans — it immediately diversifies our revenue and enhances profitability,” Tusar told CNBC.
The acquisition comes during a favorable regulatory environment for the crypto industry. The first ever pro-crypto White House has fueled increased M&A activity in recent weeks.
In March, crypto exchange Kraken agreed to acquire NinjaTrader for $1.5 billion. Last month, Ripple agreed to buy prime broker Hidden Road.
Industry Impact
The deal reflects the increasing importance of financial derivatives for cryptocurrency exchanges. Industry executives view this as part of a growing competition among digital asset exchanges and brokerages to dominate the burgeoning crypto derivatives market.
Spencer Yang, co-founder of Fractal Bitcoin, noted that “Global derivatives trading is a key driver of growth for Coinbase.”
The merger establishes Coinbase as the world’s largest crypto derivatives platform by open interest, according to the exchange’s announcement post.
Jeff Park, Bitwise’s head of alpha strategies, called the acquisition “might be the best ‘value’ deal in crypto I’ve ever seen,” adding it is “a coup for Coinbase.”
Coinbase already has a strong presence in perpetual futures, with approximately $10 billion in daily trading volume as of May 8. It also operates a US-based derivatives trading platform listing more than 20 futures contracts.
Deribit is recognized as the largest crypto options exchange, with about $30 billion in open interest. The platform does not serve US-based traders, according to its website.
With this acquisition, Coinbase “has captured all possible regulated and self-regulated derivatives products,” according to Yang, who also noted that “Deribit is the platform of choice for global traders for Bitcoin and Ethereum options.”
The deal was structured as a cash-and-stock transaction, allowing Coinbase to maintain financial flexibility for potential future acquisitions. As of December 31, Coinbase had $8.5 billion in cash on its balance sheet.
