American cryptocurrency exchange Coinbase has completed its acquisition of Deribit, a move that will open it up for more opportunities in the derivatives landscape. Precisely, Coinbase has now become the global leader in crypto derivatives by open interest and options volume Coinbase Announces the Acquisition of Deribit In a strategic move, Coinbase closed its acquisition of Deribit, integrating the firm’s $59 billion in open interest and over $1 trillion in annual trading volume. This deal was first announced back in May when the crypto exchange said it would purchase Deribit for approximately $2.9 billion in a cash-and-stock deal. This includes $700 million in cash and 11 million shares of Coinbase Class A common stock. Dubai-based Deribit is known for offering trading options, futures, and spot trading for cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH). Deribit’s Balance Sheet Looks Attractive As it stands, Deribit’s balance sheet shows that it has about $59 billion in open interest. It has also recorded a record-high monthly trading volume of $185 billion in July amid rising interest in cryptocurrencies. Quite a number of people think that the resulting company would be a trillion-dollar company. When Deribit’s trading volume. With the Dubai company’s trading volume doubling to $1.2 trillion last year, this acquisition was perceived as an essential step for Coinbase as it enters the profitable crypto derivatives market. The involvement of more institutional investors catalyzed the positive momentum in Deribit’s trading volume. On one hand, the exchange is working on expanding its operations into the U.S. market. Coinbase Pursues More Mergers and Acquisitions Outside of Deribit, Coinbase is looking at other mergers and acquisitions in a bid to establish its position in the financial market. Brian Armstrong, the CEO of the American firm, noted that “Part of the benefit of being a public company is you have a liquid currency to do that. We want it to be the right opportunity — doesn’t mean we swing at every pitch.” Furthermore, he emphasized that Coinbase is focused in acquisitions that support international expansion and product development. Specifically, it is looking out for companies that share Coinbase’s vision for scaling global crypto infrastructure. It was recently rumoured that it is in talks to acquire CoinDCX but the CEO of the latter denied it. The post Coinbase Closes $2.9 Billion Cash-and-stock Deal With Deribit appeared first on TheCoinrise.com .
