Deribit Acquisition Talks Heat Up Between Coinbase and Kraken: Is The $5B Purchase Still on Cards

Despite previous reports that claimed Kraken had cut off talks to buy Deribit, the conversations are still ongoing. Luuk Strijers, the CEO of Deribit, has firmly stated that the business would continue to function autonomously for the foreseeable future, notwithstanding speculations of a possible acquisition.

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Nausheen Thusoo
Nausheen Thusoo
Nausheen has three years of devoted experience covering business and finance. She is aware of the constantly changing financial landscape, especially in the rapidly growing cryptocurrency space. Her ability to simplify difficult financial ideas into understandable stories and her analytical thinking make her articles valuable for both novice and experienced readers.She has written about a wide range of subjects, including investing methods, market trends, and regulatory changes pertaining to the cryptocurrency industry. She has worked with Reuter, Coingape and Bankless times. Nausheen blends a talent for narrative with meticulous research skills. She is also skilled at establishing connections with business leaders so they can offer unique perspectives and interviews that enhance their reporting

In a surprising tun of events, discussions to purchase Deribit are still continuing, despite recent reports that said Kraken had abandoned the talks.

Market reports indicate that the cryptocurrency options platform is still looking at possible acquisitions, despite being a major participant in the derivatives market.

Sources close to the matter have also suggested that Coinbase, a U.S.-listed exchange, has also been testing Deribit potential for a possible takeover.

Renowned for providing bitcoin and Ethereum futures and options, Deribit is now evaluating takeover offers in collaboration with financial consultancy firm FT Partners.

Deribit CEO Shrugs Off Acquisition Rumors

Despite rumors of a potential purchase, Luuk Strijers, the CEO of Deribit, has categorically said that the company would continue to operate independently for the foreseeable future. Reports place the company’s valuation between $4 billion and $5 billion, however some estimates put it considerably higher.

Deribit appears to be methodically weighing all of its alternatives in order to broaden its reach and keep its position as the industry leader for cryptocurrency derivatives, as seen by the ongoing discussions with Kraken and other parties.

Current Rumors Take Base From Previous Talks on Possible Purchase Offer

For months, there have been rumors that Kraken would buy Deribit, and as Deribit has become more well-known in the cryptocurrency derivatives market, the rumors have gotten more intense.

In order to broaden its offers in options and futures trading, Kraken was perceived to be making a calculated move with the possible acquisition. Confusion regarding the status of the talks resulted from recent stories claiming that Kraken had backed out of the arrangement.

Market rumors had suggested even then that negotiations were still going on in spite of this, suggesting that Kraken might still be interested in purchasing the cryptocurrency options platform.

Also Read: Crypto Exchange Deribit Records 95% Rise in Trading Volume, Hitting $1.185 Trillion in 2024

Derbiti’s Market Popularity Makes it Optimal Choice For Kraken

Deribit is a desirable acquisition target for Kraken due to its dominant position in the digital asset options market. Deribit is an excellent addition to Kraken’s portfolio because it provides a substantial competitive advantage as the industry-leading exchange for cryptocurrency options.

Kraken would be able to expand and improve its current products in the cryptocurrency derivatives market because to Deribit’s strong trading volume and specific focus on options trading.

Kraken, which is already well-established in the spot trading market, may use Deribit’s infrastructure and experience to broaden its product line and increase its market share in the quickly expanding cryptocurrency options industry.

Also Read: Deribit Exits Russia Amid EU Sanctions, Restricts Russian Users Amid Growing Crypto Regulations In The Region

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