Coinbase, a leading cryptocurrency exchange in the U.S., has announced its intention to acquire Deribit, a major player in the options market, for $2.9 billion. This represents the largest deal in the history of the cryptocurrency industry.
Deal Summary
The deal was financed using $700 million in cash and 11 million shares of Coinbase's Class A common stock. According to The Wall Street Journal, the agreement is a significant step for Coinbase to strengthen its position in the crypto derivatives market.
Market Players
Launched in 2016, Deribit has approximately $25 billion in Bitcoin options open interest and relocated to Panama in 2020 due to regulatory issues. This acquisition highlights Coinbase's intention to bolster its presence in the rapidly growing derivatives market.
Reactions
Following the announcement of the deal, Coinbase's shares rose nearly 5% in premarket trading, coinciding with a surge in Bitcoin prices. The acquisition surprised many as there was limited information on the impending purchase, despite earlier reports of 'advanced discussions' between the companies.
The acquisition of Deribit underscores the increasing competition in the cryptocurrency derivatives market and Coinbase's strategic efforts to fortify its position. This deal has the potential to significantly reshape the landscape of the industry.
