By USA Goldmines 
According to Bo Pei, an analyst at US Tiger Securities, Coinbase’s acquisition of Deribit strengthens its presence in international markets, particularly in Asia and Europe, where leveraged crypto trading is more common.
The cash-and-stock transaction will enable Coinbase to expand its global offerings by introducing crypto options—financial instruments widely used for hedging and often in demand during periods of market volatility.
Shares of Coinbase, which have fallen nearly 21% year-to-date, rose 5.7% following the news. The company already supports crypto futures trading for both U.S. and international users.
According to a blog post, the deal includes $700 million in cash and 11 million shares of Coinbase’s Class A common stock.
While Coinbase is still an emerging player in the derivatives sector, it achieved record market share in both retail and institutional derivatives trading in the last quarter. During this first quarter, shares of the first quarter revenue came shy of Wall Street’s expectations despite the growth in stablecoin revenue.
In the quarter ended March 31, Coinbase earned $65.6 million, or 24 cents per share, down from $1.18 billion, or $4.40 a share a year ago. Excluding the impact of crypto investments, Coinbase’s adjusted earnings were $527 million, or $1.94 per share.
Revenue rose to $2.03 billion from $1.64 billion a year ago but was shy of the $2.12 billion consensus estimate from LSEG.
Transaction revenue tallied $1.26 billion in the quarter, while subscription and services revenue reached $698.1 million in the quarter.