Coinbase (Nasdaq: COIN), the publicly-traded cryptocurrency exchange, is set to acquire crypto derivatives platform Deribit in a deal valued at $2.9 billion, according to The Wall Street Journal.
The transaction, which includes $700 million in cash and 11 million shares of Coinbase Class A common stock, underscores Coinbase’s strategy to expand its footprint in the crypto derivatives space. Deribit is a major player in the crypto options and futures market, known for its dominance in Bitcoin and ether derivatives trading.
The acquisition marks a significant step for Coinbase as it looks to diversify its revenue streams beyond spot trading, which has come under pressure from regulatory scrutiny and market volatility. The deal is expected to provide Coinbase with access to Deribit’s trading infrastructure and institutional client base.