In brief
- Coinbase will buy options exchange Deribit.
- The deal is priced at $2.9 billion, which includes $700 million cash and 11 million shares of Coinbase Class A Common stock.
- Coinbase, which trades on the Nasdaq under the COIN ticker, gained 4% and was trading for $205 per share following the announcement.
Coinbase, America's largest crypto exchange, on Thursday announced that it has agreed to buy digital assets options exchange Deribit.
The San Francisco, California-based company said in a company blog post Thursday that the transaction was valued at $2.9 billion. The total price paid will consist of $700 million in cash and 11 million shares of Coinbase Class A common stock, the companies said.
Rumors of the companies being in advanced talks for an acquisition were first reported by Bloomberg in March.
"This strategic acquisition significantly advances Coinbase's derivatives business, establishing us as the premier global platform for crypto derivatives," the company said in a statement.
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Since the early days of the internet, HTTP 402, a payment status code that showed "Payment Required," has existed as a placeholder in web protocols. It was a digital relic that once promised an internet with built-in payment capabilities but was never fully realized. Three decades later, crypto exchange Coinbase, through its Developer Platform, has brought it back to life with x402, a new, open-source protocol that creates a native payment layer for the web. "Imagine a future where crypto is the...
Deribit boss Luuk Strijers said in a statement: "We're excited to join forces with Coinbase to power a new era in global crypto derivatives."
Once the deal closes, likely before the end of the year, "our founders John and Marius Jansen will step away from the company—marking the end of an incredible journey that began in 2014," Deribit added in its blog post.
The deal, according to the companies, consists of $700 million in cash and 11 million shares of Coinbase Class A common stock, subject to customary purchase price adjustments.
Deribit, a Dubai-based company, could not immediately be reached for comment.
Greg Tusar, vice president of institutional product at Coinbase, said that although Deribit still won't service U.S. customers, it will provide the company with key advantages.
“Cross-margining across spot, futures, and options? That’s a capital efficiency unlock few in crypto can offer," he told Decrypt.
Bitcoin Options Worth $12 Billion Expire Tomorrow—Here's What It Means
Although $12 billion worth of Bitcoin options contracts expire tomorrow—one of the largest quarterly expiries that derivatives exchange Deribit has seen—CEO Luuk Strijers says he expects volatility to be subdued. On Deribit alone, the March 28 expiry affects 45% of the open options contracts on the platform. The exchange currently has $27 billion worth of open interest in Bitcoin contracts, with the put/call ratio skewing slightly pessimistic at 0.52. A call option gives buyers the right, but do...
Coinbase stock, which trades on the Nasdaq under the COIN ticker, was recently trading 4% higher, at nearly $205 a share. The company went public in 2021 and has a current valuation above $50 billion.
Other than allowing clients to buy, sell and bet on the prices of crypto, Coinbase also has a contract with the U.S. Marshals Service (part of the Department of Justice) to manage and dispose of its digital assets.
Edited by Stacy Elliott.
