Coinbase Drops $2.9B on Deribit Buy—Because Nothing Diversifies Like a Options Powerhouse

Coinbase just opened its war chest—and Deribit’s shareholders are $2.9 billion richer. The crypto giant’s latest acquisition targets the Amsterdam-based options platform, a move CEO Brian Armstrong calls ’revenue diversification.’ Because when exchange fees slump, why not double down on leveraged derivatives?

Wall Street analysts yawned. ’They bought volatility exposure disguised as strategy,’ muttered one trader between sips of overpriced cold brew. Meanwhile, retail crypto degens celebrated—finally, a legit path to lose money on Coinbase’s UI instead of Binance’s.

Deribit’s 90% market share in crypto options now belongs to the publicly traded exchange. Expect regulatory fireworks: the SEC hates few things more than American investors accessing unregistered derivatives... through creative corporate structures.

Deribit to ‘Immediately Enhance’ Coinbase’s Profitability

The executives discussed the Deribit acquisition on the Thursday earnings, arguing that Deribit has been “consistently profitable,” as reported by Fortune Crypto. “It strengthens our business by giving us market leadership within options, which we expect to grow, and enhances the profitability.”

The acquisition news accompanies Coinbase’s report of losses in the year’s first quarter. Its net income plunged quarter-over-quarter by 95% to $66 million from $1.29 billion and net revenue fell 10% to $1.96 billion.

“We expect Derebit to immediately enhance our profitability and add diversity and durability to our trading revenues,” said Alesia Haas, Coinbase’s CFO.

This is a major step in our global expansion strategy. With Deribit’s strong international presence and Coinbase’s regulated US and International operations, we’re set to offer unparalleled access to crypto derivatives around the world.

Furthermore, in the announcement, Coinbase likened crypto options to the equity options boom of the 1990s. Options trading revenues are also typically less cyclical than spot trading, it adds. Traders use options to manage risk during rising and falling markets alike.

According to Deribit CEO Luuk Strijers, “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.”

Meanwhile, Coinbase says the retail users in the US can access futures trading via Coinbase Financial Markets and Coinbase Derivatives Exchange. The International Exchange provides spot and perpetual futures products for users outside the US. Now, the Deribit purchase will add access to options markets for international institutional and advanced traders.