Coinbase (COIN, Financial) has announced a $2.9 billion acquisition of Deribit, the world's largest crypto derivatives exchange. This move positions Coinbase to dominate the rapidly growing crypto options market, reminiscent of the stock options boom in the 1990s. The deal, which includes $700 million in cash and the remainder in stock, is set to complete by the end of the year pending regulatory approval.
Following the announcement, Coinbase shares rose nearly 5% to approximately $206. However, the stock remains down about 20% since the beginning of the year. Bitcoin prices also surged, crossing the $100,000 mark for the first time since February.
The acquisition is part of a broader trend of mergers and acquisitions in the crypto industry. Notably, Ripple recently acquired Hidden Road for $1.25 billion, and MGX has invested $2 billion in Binance. Deribit's CEO, Luuk Strijers, emphasized that the acquisition will enhance their strong, profitable business by providing more opportunities for traders across various financial products under a trusted brand.
Despite past setbacks in the crypto derivatives market, including major bankruptcies and security breaches in 2022, the sector is poised for growth as institutional adoption of digital assets increases.
