Coinbase Acquires Deribit to Lead Crypto Derivatives

Coinbase has announced a $2.9 billion acquisition of Deribit, the world's leading crypto options exchange, aiming to become the top global platform for crypto derivatives by open interest and options volume. The deal, pending regulatory approval and expected to close later this year, will be funded by $700 million in cash and 11 million Coinbase shares. Deribit, which controlled over 85% of the global crypto options market and reported $1.2 trillion in annual trading volume, will enhance Coinbase’s offerings for institutional and advanced traders. The acquisition positions Coinbase ahead of competitors like Binance and OKX, and analysts anticipate it could trigger further consolidation in the crypto exchange industry. Despite the ambitious move, Coinbase’s recent Q1 earnings report revealed a sharp drop in profit and revenue, though positive segments and regulatory successes boosted market sentiment. Deribit's founders will depart after the acquisition, with business operations continuing as usual until then.