Coinbase has announced a $2.9 billion acquisition of Deribit, one of the world’s leading crypto derivatives platforms, marking a major step in its global expansion strategy. The deal comes as the company reported a weak first quarter, with revenue and net income falling due to reduced trading volumes and a broader market downturn. Despite the financial dip, Coinbase is betting on derivatives and institutional growth to drive its next phase of development.
Coinbase Acquires Deribit in $2.9 Billion Deal, Expanding Footprint in Global Crypto Derivatives Market
Coinbase Global has officially announced the acquisition of Deribit, one of the world’s leading crypto derivatives exchanges, for approximately $2.9 billion. The landmark deal signals Coinbase’s biggest step yet toward expanding its global influence in institutional cryptocurrency trading.
The announcement, made public on May 8, confirmed that Coinbase, the largest cryptocurrency exchange in the United States by trading volume, will acquire Deribit through a combination of $700 million in cash and approximately 11 million shares of Coinbase Class A common stock. The deal is subject to customary regulatory approvals and is expected to close before the end of 2025.
Coinbase share chart (Source: Google Finance)
With this acquisition, Coinbase gains a significant foothold in the derivatives market — a sector that has grown increasingly lucrative in recent years as institutional investors seek hedging tools and more sophisticated trading instruments.
Greg Tusar, Coinbase’s vice president of institutional product, emphasized the significance of the deal in a public statement, saying, “With Deribit’s strong presence and professional client base, Coinbase is making its most substantial move yet to accelerate our international growth strategy.”
Deribit’s Founders to Exit After Deal Completion
Deribit, originally founded in 2014 by brothers John and Marius Jansen, has long been a dominant force in the crypto options space, particularly for Bitcoin and Ethereum options. The Jansens are expected to step away from the company following the deal’s completion, marking the end of more than a decade of hands-on leadership.
In its own announcement, Deribit assured users that the exchange would maintain business as usual until the transaction officially closes.
Deribit CEO Luuk Strijers expressed optimism about the future under Coinbase’s umbrella, saying, “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.”
Integration Promises Enhanced Efficiency
One of the key advantages of the acquisition, according to both firms, will be the seamless integration of Deribit’s technology stack with Coinbase’s broader ecosystem. This could significantly improve client onboarding, boost capital efficiency, and strengthen fiat payment infrastructure — especially critical for institutional clients navigating cross-border transactions.
The acquisition follows months of speculation and behind-the-scenes regulatory maneuvering. Reports in March indicated that both Coinbase and Deribit had notified financial regulators in Dubai about the potential transaction. Deribit currently holds a regulatory license in Dubai, and that license would need to be transferred or renewed under Coinbase’s name for the deal to proceed smoothly.
Earlier industry speculation had placed Deribit’s valuation between $4 billion and $5 billion. While the final purchase price of $2.9 billion is below those estimates, analysts say the valuation reflects Coinbase’s leverage as a public company and the increasingly competitive nature of crypto mergers and acquisitions.
A Wave of Consolidation in the Crypto Derivatives Space
Coinbase’s acquisition of Deribit follows another major derivatives market development — Kraken’s announcement on May 1 that it would acquire NinjaTrader, a platform known for its futures trading capabilities, in a deal reportedly worth $1.5 billion.
The flurry of M&A activity points to a growing consolidation trend in the crypto industry, where large centralized exchanges are racing to secure licenses, expand product offerings, and capture institutional flows in an increasingly regulated global market.
The derivatives market has become a critical battleground. With average daily trading volumes in crypto options and futures surpassing those in spot markets, exchanges are under pressure to provide the tools, liquidity, and compliance necessary to serve sophisticated traders and institutions.
For Coinbase CEO Brian Armstrong and his executive team, the acquisition is part of a larger plan to scale the company’s international footprint and attract a broader institutional clientele. Coinbase has recently stepped up its efforts to diversify revenue streams away from spot trading, and Deribit’s derivatives expertise fits neatly into that vision.
While the acquisition is still subject to approval, the move is part of Coinbase’s long-term ambition to become the go-to platform for every layer of crypto finance — from retail traders buying Bitcoin to hedge funds managing complex derivatives strategies.
Coinbase Q1 Earnings Miss Estimates Amid Market Slowdown, But Deribit Acquisition Fuels Strategic Expansion
The acquisition comes as Coinbase posted mixed financial results for the first quarter of 2025, missing revenue expectations and reporting a sharp drop in net income.
The Q1 report, released on May 8, revealed a 10% quarter-over-quarter decline in total revenue, which fell to $2 billion. That figure came in 4.1% below industry expectations, weighed down by a general downturn in crypto trading activity and market valuations. Despite the overall miss, earnings per share (EPS) of $1.94 managed to beat the Zacks Consensus Estimate of $1.85, thanks in part to continued growth in subscription-based services.
The most eye-catching figure in Coinbase’s Q1 earnings was the drastic 95% plunge in net income — from a near-record $1.29 billion in Q4 2024 to just $66 million this quarter. The bulk of the drop was attributed to a $596 million unrealized loss stemming from Coinbase’s crypto asset holdings, reflecting the volatile market environment triggered in part by geopolitical and economic uncertainty.
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The downturn coincided with a broader slump in the digital asset market, driven by double-digit drops in market capitalization across major cryptocurrencies. Analysts point to recently enacted tariffs under the newly re-elected Trump administration as a contributing factor to the downturn, dampening investor sentiment and reducing cross-border trading volumes.
Trading Activity Falls Sharply, But Services Revenue Climbs
Transaction revenue for Coinbase — which historically accounts for the majority of its earnings — fell by 18.9% from Q4, landing at $1.26 billion. This mirrored a 10.5% decline in trading volume, which dropped to $393 billion for the quarter. These declines underscore how sensitive Coinbase’s core business remains to overall market activity.
However, a bright spot in the report was Coinbase’s growing revenue from subscriptions and services, which climbed 8.9% to $698.1 million. The company cited its stablecoin services as the largest contributor to this segment, demonstrating how Coinbase is successfully diversifying away from volatile spot trading income.
Despite the Q1 slump, Coinbase reported gains in global market share for both spot and derivatives trading. The firm also highlighted its expanding presence in high-growth emerging markets such as Argentina and India, where it recently secured critical regulatory approvals and operational licenses.
On the regulatory front, Coinbase touted the recent dismissal of its lawsuit with the US Securities and Exchange Commission (SEC) as a pivotal legal win.
