Coinbase Stock Rises 5% After $2.9 Billion Deal To Acquire Deribit

Coinbase is acquiring Deribit, a Dubai-based crypto derivatives exchange, in a deal valued at $2.9 billion. The acquisition aims to bolster Coinbase's global presence and better compete with industry giants like Binance. The deal involves $700 million in cash and 11 million shares of Coinbase stock, expected to close by year's end. Deribit is a leading platform in crypto derivatives, handling over $1 trillion in trading volume last year. Coinbase anticipates enhanced revenue diversification and profitability through this acquisition. Deribit's CEO emphasizes that the union will accelerate growth and provide traders with more opportunities across various products. Coinbase highlighted Deribit's positive adjusted EBITDA as a significant factor in the acquisition. The deal occurs amidst a favorable regulatory environment, influencing increased M&A activity within the crypto sector. This acquisition follows other major deals in the crypto industry, such as Kraken's purchase of NinjaTrader. Coinbase stock saw a positive reaction, rising over 5% following the announcement of the acquisition.