Coinbase Shells Out $2.9B for Deribit in Landmark Crypto Deal, Earnings Miss Shadows Acquisition

In a move signaling a major power play in the cryptocurrency derivatives market, Coinbase has announced its acquisition of Deribit, the world's leading crypto options exchange, for approximately $2.9 billion. This landmark deal, the largest merger and acquisition in the history of the crypto industry, aims to establish Coinbase as the undisputed global leader in crypto derivatives, offering a comprehensive suite of trading products under one roof.

The acquisition, comprised of $700 million in cash and 11 million shares of Coinbase Class A common stock, will see Coinbase absorb Deribit's dominant position in the crypto options space, which currently boasts around $30 billion in open interest. Deribit facilitated over $1 trillion in trading volume in the past year, primarily outside the US, catering to institutional and advanced traders.

Both companies lauded the strategic benefits of the union. Deribit CEO Luuk Strijers expressed excitement about joining forces with Coinbase to "power a new era in global crypto derivatives," emphasizing the combined entity's potential to offer traders "even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand."

Coinbase highlighted the immediate scale and market leadership the acquisition provides, positioning them to capitalize on the anticipated growth of the crypto options market, drawing parallels to the equity options boom of the 1990s.

The deal is also expected to enhance Coinbase's profitability and diversify its revenue streams, as options trading revenues are typically less correlated with the cyclical nature of spot trading. Deribit has a proven track record of positive adjusted EBITDA, which Coinbase believes will grow as a combined entity.

Q1 earnings miss

However, the celebratory acquisition news was somewhat tempered by Coinbase's first-quarter 2025 earnings report, released Thursday. While the company's total revenue reached $2.0 billion, it fell short of the $2.11 billion estimate.

Earnings per share (EPS) came in at $0.24, significantly below the $1.98 expected. Transaction revenue also saw a decline to $1.26 billion compared to $1.55 billion in the previous quarter, and trading volume decreased from $439 billion to $393 billion. Subscription and services revenue, at $698 million, slightly missed the $702.5 million estimate, and adjusted EBITDA of $930 million was below the $971 million consensus.

Despite the earnings miss, Coinbase's stock initially reacted positively to the Deribit acquisition news, closing Thursday's session up by 5.06% at $206.50. However, the stock saw some pullback in after-hours trading, settling at $200.98, likely reflecting investor digestion of the less-than-stellar earnings figures.

While the earnings report may raise some short-term concerns, the long-term implications of integrating Deribit's leading options platform with Coinbase's global reach could solidify its position as a dominant force in the evolving cryptocurrency landscape. The transaction is expected to close by the end of the year, pending regulatory approvals. Following the closure, Deribit founders John and Marius Jansen will step down from the company.