Coinbase's $2.9B Deribit Deal a 'Legitimate Threat' for Peers, Wall Street Analysts Say

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By Helene Braun | Edited by Aoyon Ashraf May 8, 2025, 8:13 p.m. Coinbase CEO Brian Armstrong sits for a portrait in their San Francisco headquarters. (Christie Hemm Klok/Getty Images) What to know : Coinbase’s $2.9 billion acquisition of Deribit vaults it to the top of the global crypto options market, surpassing Binance and others. Analysts say the deal marks the start of a consolidation cycle as Coinbase flexes its public-market advantage to absorb key players. The move expands Coinbase’s international reach and bolsters earnings with Deribit’s steady options revenue, estimated at up to $450M in 2024. Coinbase's (COIN) $2.9 billion acquisition of Deribit will be a tipping point for the company, pushing the U.S.-based exchange into direct competition with global heavyweights like Binance, Wall Street analysts wrote on Thursday. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto for Advisors Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . The massive deal is more than just a platform expansion; it's a paradigm shift for the exchange and trading industry. According to the analysts, the deal signals the start of a new consolidation cycle in the crypto trading industry, as smaller exchanges face pressure and TradFi firms look to expand further into the sector. Read more: In $2.9B Deal, Coinbase Buys Deribit to Expand in U.S. Crypto Options Market Deribit controls 85% of the global crypto options market and reported $1.2 trillion in trading volume last year. By absorbing it, Coinbase becomes the world’s largest crypto derivatives platform by open interest and options activity, KeyBanc wrote in a report. The deal also plugs a geographic gap, expanding Coinbase’s presence overseas, where just 20% of its revenue currently originates, according to Barclay’s Benjamin Buddish. Oppenheimer called it a “legitimate threat” to dominant exchanges, noting that Coinbase’s public status gave it the ability to fund the acquisition using stock, an option not available to most private firms. That advantage, combined with $8.5 billion in cash on hand, could turn Coinbase into the most aggressive consolidator in the space. Options markets are attractive in part because they offer steady volumes across market cycles. Barclays estimated Deribit’s 2024 revenue between $425 million and $450 million, suggesting a healthy earnings contribution to Coinbase’s bottom line. KeyBanc also highlighted the strategic fit, calling Deribit’s institutional user base and international footprint a natural extension of Coinbase’s futures and spot products. Regulatory approval for the deal remains pending, but analysts expect Coinbase to provide more color during its first-quarter earnings report on Thursday. The exchange is expected to miss Street expectations for earnings in the first quarter as markets were rattled by economic uncertainty. Shares of COIN were up 6.58% on the day, while bitcoin rose 4.31%. Read more: Coinbase Earnings Pain Likely as Retail Activity Slumps, Wall Street Analysts Warn Coinbase Deribit Helene Braun Helene is a New York-based markets reporter at CoinDesk, covering the latest news from Wall Street, the rise of the spot bitcoin exchange-traded funds and updates on crypto markets. She is a graduate of New York University's business and economic reporting program and has appeared on CBS News, YahooFinance and Nasdaq TradeTalks. She holds BTC and ETH. X icon About About Us Masthead Careers CoinDesk News Crypto API Documentation Contact Contact Us Accessibility Advertise Sitemap System Status DISCLOSURE & POLICES CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies . 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