Coinbase, the world’s second-largest cryptocurrency exchange, has reached an agreement to acquire Deribit. According to a blog post released on Thursday, the firm revealed its readiness to acquire Deribit, one of the biggest crypto derivatives trading forums.Â
According to the revelation, Coinbase offered $2.9 billion for the takeover as the firm aims to expand into crypto derivatives trading. However, the deal is tipped to become complete later in the year pending approval by regulators.
Till then, the exchange revealed that Deribit will continue to run separately under the same team. While the founders of the platform John and Marius Jansen will remain until the completion of the takeover. Deribit in a separate statement disclosed that the exit would mark the end of a joint venture that emanated in 2014.
Likewise, the statement narrated that the combination of Deribit’s technology with the products of Coinbase will support fiat rails, capital efficiency, and onboard more users to the platform.
Furthermore, insight into the structure of the $2.9 billion deal includes $700 million in cash and 11 million shares of Coinbase Class A common stock. Still, the financial obligation is subject to a predetermined purchase price change.
Before now, reports emanated that the cryptocurrency exchange and Deribit had informed Dubai regulators about the takeover. This is a result of the Dubai license Deribit holds with a possible transfer to Coinbase if the deal manifests. Initial reports suggested that the takeover deal could be worth between $4 billion to $5 billion.
Executives’ insight into the takeover deal of Deribit by Coinbase
According to the vice president of institutional products of Coinbase, Greg Tusar the takeover will support the exchange to expand into the profitable crypto derivatives space. The executive said it will further help Deribit to scale globally and attract new users.
Tusar describes how Deribit’s acceptance among professional users will push Coinbase to fast-track its International growth plan. Similarly, Deribit CEO, Luuk Strijers stated that the platform is glad to join forces with Coinbase.
The CEO said the takeover will usher in a new era in the global crypto derivatives market. Further, Luuk emphasized that over the last few years, the Deribit team has built a strong and profitable business.
He added that the deal will fast-track the foundation the team has laid while bringing up fresh opportunities for spot, futures, perpetual, and other options within a single platform.
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