Overview of the Deal
Acquirer: Coinbase (NASDAQ: COIN)
- P/E Ratio: 49.93
- EV: $67.87B
Target: Deribit (Privately Owned);
Total Transaction Value: $2.9B
Expected Closing Date: Q4 2025
On May 8, 2025, Coinbase and Deribit announced they had come to an agreement in which Coinbase will acquire Deribit for $2.9 billion. Coinbase is an American cryptocurrency exchange founded in 2012 with over 100 million users. Deribit is a cryptocurrency exchange specialized in trading futures and options. It was founded in the Netherlands in 2016 and is now headquartered in Dubai, UAE. The deal comprises $700 million in cash and 11 million shares of Coinbase’s Class A common stock.
This strategic acquisition will advance Coinbase’s derivatives business, establishing a premier global platform for crypto derivatives. This move will create a comprehensive institutional platform, providing traders access to spot, futures, perpetual futures, and options in one capital-efficient platform. This will also make Coinbase the global leader in crypto derivatives by open interest and options volumes, as Deribit facilitated over $1.2 trillion in trading volume over the past year across major markets, ex-U.S. Coinbase will experience durable, diversified revenues as option trading has been less cyclical than spot trading, enhancing overall profitability.
“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives. 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 under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market." – Luuk Strijers (Deribit CEO)
Integration Outlook
Short-Term: Coinbase’s acquisition is a major move for crypto traders worldwide. This will expand Coinbase’s rapidly growing U.S.-based operation worldwide, an area it had been lagging behind rival Binance. The addition of options will complete Coinbase’s derivatives suite, currently providing futures trading. Deribit, known for dominating in volume, especially in Bitcoin and Ethereum contracts, offers immediate credibility and infrastructure in a high-margin segment of the market.
While this transaction appears promising, given Deribit’s consistent track record of generating positive adjusted EBITDA and Coinbase’s high cash balance of $8.5 billion, they are facing intense competition. In March 2025, rival Kraken agreed to a $1.5 billion deal for NinjaTrader, a U.S retail futures platform. Just a month later, rival Ripple acquired credit network Hidden Road for $1.25 billion. With competitors scaling quickly through M&A, Coinbase must move quickly to establish a global platform and establish its position in the evolving crypto derivatives space.
Despite strong competition, investors showed positive signs with Coinbase stock jumping up roughly 5%, despite being down 19.72% on the year. Since the announcement, the stock has continued to rise by over 25%. Much of this movement is also associated with Coinbase being introduced to the S&P, as the first cryptocurrency company to ever be included in the index. This move will most likely attract many passionate investors and draw institutional and retail investors to its platform with this increased visibility and legitimacy.
Long-Term: This acquisition shows signs of positive growth strategically and financially. The platform could become the go-to venue for institutional and advanced retail investors seeking accessibility and sophistication. The challenge lies in maintaining Deribit’s high performance standards, a 24/7 process, and its technical infrastructure while aligning with Coinbase’s compliance-heavy U.S operations.
With global expansion being a key objective of the acquisition, Coinbase will be able to springboard into European and Asian markets, dominated by Binance. The regulatory first approach of Coinbase will offer these investors a trusted crypto derivatives market.
Long-term success will be highly reliant on aligning the culture and risk frameworks of the two different operating models. Despite strong financial performance by each platform, it must integrate all capabilities without disrupting its core user base.
Risks and Uncertainties: A key challenge will be integrating two distinct business models, given strict regulations on trading. The U.S currently hasn’t legalized crypto trading/perpetuals domestically, despite the first-ever pro-crypto White House. Yet, current U.S President Donald Trump is a strong advocate for digital assets and pledges to establish America as a global center for cryptocurrency.
Increased international regulation, given overall scrutiny of crypto, may also provide difficulties for the platform. Crypto market growth attracts government tightening, KYC/AML requirements, and exchange licensing. For Coinbase, this means complying with evolving laws across various jurisdictions. This would result in delays, restricted access, and forced closure if compliance isn’t met.
Overall, consumer preferences may fluctuate over time, affecting operational profitability. Currently, Deribit has about $30 billion of open interest on the platform, but this figure is subject to change. These worries may not be prevalent just yet, as younger generations have shown a more positive reaction to crypto than those who have preceded them.