Unchained Coinbase Acquired Deribit for $2.9 Billion. Here’s Why It Matters - Ep. 831
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May 9, 2025 Owen Lau, Executive Director and Senior Analyst at Oppenheimer, shares insights on Coinbase’s groundbreaking $2.9 billion purchase of Deribit, the largest deal in crypto history. He discusses the strategic significance of Deribit’s position in the derivatives market and its implications for Coinbase’s dominance. Lau highlights how the derivatives market is outpacing spot trading and predicts industry consolidation. He also explains Coinbase's decision to primarily use stock in the acquisition and what this means for future revenue and competition among smaller exchanges.
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Deribit's Dominance in Options
- Deribit holds about an 85% market share in crypto options trading, making it highly coveted.
- Its integration with Coinbase offers a capital-efficient trading venue combining spot, futures, and options.
Crypto Derivatives Overshadow Spot
- Crypto derivatives trading volume is already 70% of total crypto volumes and much larger than spot.
- The derivatives market could grow to become 10 times the size of spot trading.
Coinbase's Strong Financial Position
- Coinbase mostly paid with stock, preserving $7.8 billion cash after the acquisition.
- This strong balance sheet allows Coinbase to pursue additional acquisitions and expansion.