TLDR
- Coinbase (COIN) stock rose 4.15% to $204.72 on May 8th in early trading hours ahead of earnings.
- The company will acquire crypto derivatives platform Deribit for $2.9 billion.
- The deal includes $700 million in cash and 11 million Coinbase shares.
- The acquisition is expected to close by year-end, pending regulatory approval.
- Earnings call is scheduled for May 8 at 5:30 PM EDT.
Coinbase Global, Inc. (NASDAQ: COIN) stock jumped 4.15% to $204.72 as of 10:06 AM EDT on May 8, following the company’s announcement of a major acquisition.
The leading U.S.-based crypto exchange revealed plans to acquire Deribit, one of the world’s largest crypto derivatives platforms, for about $2.9 billion. The earnings call is also scheduled for later today at 5:30 PM EDT, keeping investors on alert.
Deal Terms and Market Expansion
The $2.9 billion agreement will be settled through a combination of $700 million in cash and 11 million shares of Coinbase Class A common stock. The acquisition is expected to bolster Coinbase’s international footprint and give it a firm foothold in the profitable crypto derivatives market. Greg Tusar, Coinbase’s vice president of institutional product, said Deribit’s strong presence and professional client base will accelerate the company’s global growth strategy.
🚨Coinbase to buy Deribit for $2.9B ($700M cash, 11M shares) in Crypto's Largest Ever M&A: WSJ pic.twitter.com/s08UP26MQO
— matthew sigel, recovering CFA (@matthew_sigel) May 8, 2025
According to Coinbase, the transaction is subject to regulatory approvals and customary closing conditions. The deal is expected to close by year-end. Reports from March indicated that both Coinbase and Deribit had already approached regulators in Dubai, where Deribit holds a license. If the deal goes through, the license will need to be transferred to Coinbase.
Valuation and Regulatory Steps
Earlier reports had speculated that Deribit’s valuation could fall between $4 billion and $5 billion. The final purchase price, however, has been set at about $2.9 billion. The structure of the deal suggests strategic pricing, especially as Coinbase aims to scale operations while meeting regulatory requirements.
Coinbase’s Performance Snapshot
Despite today’s stock bump, Coinbase’s year-to-date (YTD) return stands at a negative 17.62%, underperforming the S&P 500’s 3.78% drop over the same period. Over the past year, COIN shares have slipped 3.14%, while the broader market gained 9.09%. The stock has seen stronger performance over a three-year period, with a 97.19% return, yet lags with a five-year return of -46.31%.
With the stock currently trading at $204.72 and a 1-year target estimate of $259.00, investors will be closely watching the earnings call this evening for further guidance on growth prospects following the Deribit acquisition.
