Coinbase’s $2.9 Billion Deribit Deal: How This Acquisition Will Boost Its Profitability

Coinbase Acquires Deribit in $2.9 Billion Deal to Boost Global Derivatives Push

Coinbase is acquiring crypto derivatives exchange Deribit for $2.9 billion, aiming to significantly expand its presence in the crypto options market outside the United States.

The deal, one of the largest in cryptocurrency history, combines $700 million in cash and 11 million Coinbase Class A shares.

Deribit, which dominates Bitcoin options trading with an 85% market share and handled $1.2 trillion in volume in 2024, positions Coinbase to reach deeper into Asia, Europe, and the Middle East—regions where leveraged trading is more active and regulatory environments more favourable.

Both companies have already notified regulators in Dubai, where Deribit holds its operational licence.

What Coinbase Gains From The Deribit Acquisition

While Coinbase is no stranger to crypto futures, the acquisition gives the exchange a new foothold in options trading, which is increasingly in demand by both institutional and retail traders.

Options are often used to hedge against market swings, and their use typically holds steady even during volatile periods.

During the company’s earnings call on Thursday, Coinbase COO Emilie Choi explained,

“It's been consistently profitable. It strengthens our business by giving us market leadership within options, which we expect to grow, and enhances the profitability.”

Coinbase CFO Alesia Haas added,

“We expect Deribit to immediately enhance our profitability and add diversity and durability to our trading revenues.”

Derivatives Volumes Skyrocket As Competition Heats Up

Coinbase’s own derivatives volumes surged 10,950% in 2024, according to filings, showing rapid adoption.

The Deribit deal also gives it leverage in a market increasingly dominated by competitors like Binance and Bybit.

Bo Pei, analyst at US Tiger Securities, said the acquisition gives Coinbase “a foothold in non-U.S. markets, especially Asia and Europe, where leverage trading is more prevalent.”

Meanwhile, Daiwa Securities analyst Steven Nie noted,

"Should the U.S. legalize crypto options trading/perpetuals trading domestically, Coinbase will be swift to offer these services to US clients, bringing significant revenue upside.”

Profit Slumps Ahead Of Strategic Shift

Despite the acquisition fanfare, Coinbase reported a sharp decline in earnings for the first quarter of 2025.

Net income dropped 95% to $66 million from the previous quarter, while total revenue fell 10% to $1.96 billion—missing Wall Street estimates.

The firm’s earnings-per-share came in at just 26 cents, well below analysts’ expectations of $1.93.

Shares dipped 3% in after-hours trading following the results.

Coinbase shares have lost nearly 21% of their value this year but briefly jumped 5.7% after news of the acquisition broke.

Expanding Beyond Spot Trading As Revenue Mix Evolves

Alongside trading fees, Coinbase is investing in growing its “subscriptions and services” revenue, which rose 8% to nearly $700 million in the last quarter.

This category includes interest from USDC reserves, fees from asset custody, and revenue from its Ethereum layer-2 network, Base.

The company continues to steer towards more stable, recurring income streams to offset the volatile nature of trading revenue, with derivatives now playing a central role in that plan.

According to Coinbase,

“We expect Q2 subscription and services revenue to be within $600-$680 million, as we anticipate Q/Q growth in stablecoin revenue to be more than offset by a decline in blockchain rewards revenue due to lower asset prices. We expect Q2 transaction expenses to be in the mid-teens as a percent of net revenue. We expect technology & development and general & administrative expenses to range from $700-$750 million.”

Crypto M&A Wave Gains Momentum

Coinbase isn’t alone in pursuing large acquisitions to scale up.

Last month, Ripple purchased prime brokerage Hidden Road for $1.25 billion, while Kraken announced in March that it would acquire futures platform NinjaTrader for $1.5 billion.

Pei told the Wall Street Journal that Coinbase’s bold bet may only be the beginning of an industry-wide buying spree.

“There will be more consolidations in the crypto market led by U.S. firms.”

With regulatory tailwinds under U.S. President Donald Trump, who has voiced strong support for digital assets, crypto firms are racing to expand before the next wave of institutional demand arrives.