Coinbase in the process of buying Deribit for $5 billion

Coinbase is deep in talks to buy Deribit, the largest crypto options exchange on the planet. Deribit handles more Bitcoin and Ether options than anyone else.

According to a report from Bloomberg, the two companies have already contacted regulators in Dubai, where Deribit holds a license. That license would be handed over to Coinbase if the deal goes through.

No final agreement has been signed. The deal could fall apart. But Bloomberg reported back in January that Deribit’s valuation sits somewhere between $4 billion and $5 billion. That range hasn’t changed. The people close to the deal asked not to be named because the talks are private.

Coinbase chases bigger control over crypto derivatives

If this happens, it will be one of the biggest takeovers in crypto history. The timing isn’t random. Donald Trump’s return to the White House has already kicked off a fresh round of deal-making. He placed crypto-friendly people in important government roles. One of his newest moves is creating a Bitcoin reserve. That policy alone is pulling companies back into action.

Coinbase wants to take over Deribit to finally get real skin in the crypto derivatives game. The company already runs a Bermuda-based derivatives venue, launched in 2023. But it’s always been more focused on spot trading. That’s where most of its strength is. Buying Deribit would flip the script.

Options trading is exploding. Deribit’s platform gives traders access to options, futures, and spot trading. Total volume on Deribit nearly doubled last year. It hit $1.2 trillion, according to Deribit. The company also reported that total options notional volume jumped 99% to $743 billion in 2024.

Kraken, a main rival to Coinbase, is also trying to move fast. Just this week, Kraken said it’s buying NinjaTrader, a retail futures platform, for $1.5 billion. That deal will let Kraken offer crypto derivatives in the U.S. for the first time. Bloomberg says Kraken could go public as early as the first quarter of next year.

Crypto M&A grows after Trump’s win

Deribit’s founders, John Jansen and Marius Jansen, launched the exchange in the Netherlands in 2016. Early investors included crypto firm XBTO and 10T Holdings. The company is still technically not for sale, according to its own statement from January. “In short, Deribit has not been put up for sale,” the company said. “Over time, we have received interest in strategic investments from a variety of parties, which we will not disclose.”

Still, behind the scenes, things are clearly moving. The crypto rally that followed Trump’s election is setting the stage for more deals like this. According to advisory firm Architect Partners, total M&A activity in crypto jumped from $400 million in Q4 2022 to $1.2 billion in Q4 2023.

More companies are getting in on it. In January, FalconX announced it was acquiring Arbelos Markets, a derivatives startup. MoonPay and Chainalysis have also made their own acquisitions this year.

Coinbase just posted a strong quarter. Last month, it said revenue more than doubled and profit went above forecasts. Retail traders are back. Many had pulled out during the last bear market. That return is giving Coinbase more room to make moves like this.

Options have become one of the most-used tools in the crypto space. They let traders buy or sell assets at a fixed price by a set time. But they don’t have to complete the trade. In crypto’s wild markets, that kind of flexibility helps hedge risk.

If this deal goes through, Coinbase would instantly become a serious force in crypto derivatives. That’s not something it’s been known for. Until now.

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