Deribit Is Considering Acquisition at a $5 Billion Valuation

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Deribit, a leading cryptocurrency options exchange, is reportedly in talks with multiple unidentified buyers regarding potential acquisitions. Despite boasting a staggering total trading volume exceeding one trillion dollars, the company is reportedly giving serious thought to a sale.

According to reports, Kraken initially showed interest in striking a deal with Derebit, but the talks failed to advance past the preliminary stage of inquiry.

Deribit May See Acquisition

Since its establishment in 2016, the crypto derivatives exchange Deribit has recently started entertaining acquisition offers. As per a recent report, Kraken was initially interested in acquiring Deribit for an estimated price range of $4 to $5 billion, but no firm decision has been made yet.

Ever since that announcement, I haven’t seen any significant players openly expressing their intent to buy, but the company hinted at continuous interest in the market.

Essentially, Deribit is not being offered for purchase. Instead, there has been ongoing curiosity about potential strategic investments from numerous sources, but these details are not being shared publicly by the company.

Despite the potential acquisition, Derebit continues to stand as one of the biggest players in the options exchange market. Its trading statistics serve as a significant indicator of market patterns, right up until 2025 and beyond. Moreover, the company boasted a near-doubling of its total trade volume last year.

Nonetheless, Derebit, with its robust income sources, has faced a number of challenges. To illustrate, this Dutch firm withdrew from the EU market in 2020 due to regulatory complications and subsequently moved to Panama, only to relocate again to Dubai in 2023.

Or, more casually:

Despite its strong finances, Derebit has had its share of troubles. Take for instance, this Dutch company exited the EU market in 2020 because of regulatory hurdles, and then shifted to Panama before settling in Dubai in 2023.

Furthermore, the company’s proposal to introduce appealing cryptocurrency options encountered little interest because of the minimal volatility associated with these products. On the other hand, innovative financial instruments such as Bitcoin ETF options have been experiencing substantial investments, signaling a significant change in the market dynamics.

Mario Nawfal wrote on X (previously Twitter) that the valuation of $4B to $5B is no small feat, considering the massive volume of $1.2 trillion it manages. With the Trump administration fostering a crypto-friendly environment and merger and acquisition deals happening, this could be an ideal time for Deribit to make a significant stride. Every day, cryptocurrency is becoming more legitimate, and Deribit is right in the heart of it.

In the current market scenario, Deribit isn’t the sole options exchange that might attract buyout offers. Just two weeks ago, FalconX announced its intention to acquire Arbelos Markets following a highly profitable quarter. The CEO of FalconX foresees a surge in mergers and acquisitions in 2025, and Deribit could potentially be involved in this trend.

Yet, the potential agreement remains in its initial phases. The company hasn’t provided any additional insights regarding its future, though it seems they engaged Financial Technology Partners LLC back in 2023 to facilitate secondary stock transactions.

It appears that Deribit has revised its directive to encompass all acquisitions in full. The reasons behind this change remain mostly unclear.

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2025-01-15 03:32