Deribit Hints Towards Acquisition Deal, Valuation Could Exceed $4B- $5B

According to Bloomberg, options trading platform Deribit is collaborating with FT Partners to investigate strategic prospects after attracting interest from possible buyers.

Deribit In Talks to Sell the Company?

As per the report, Deribit is talking with Financial Technology Partners LLC. Although its general consulting mandate currently includes evaluating offers for the entire company, FT Partners was first engaged in early 2023 to assist in setting up secondary stock sales for current Deribit investors. 

According to one source, Deribit might be worth $4 billion, $5 billion, or more. Kraken, a digital asset exchange, has considered Deribit but decided against it, according to a person aware of the situation.

In a statement, Deribit stated, “To put it briefly, Deribit has not been put up for sale.” “A range of parties have expressed interest in strategic investments over time, which we will not reveal.” FT Partners and Kraken declined to comment. 

As of January 13, Deribit had recorded more than $26 billion in monthly trading activity for Ethereum and Bitcoin futures contracts, according to CoinGlass data.

Also Read: Deribit Unveils Hybrid Custody For Institutional Adoption Of Crypto Derivatives

Although they are not required to complete the trade, options provide traders the right to buy or sell an asset at a predefined price at a particular time. They enable traders to efficiently hedge their risk in a variety of assets in the extremely volatile cryptocurrency market.

Enter Trump to the Scene

Deribit’s talks support indications that a surge in cryptocurrency following Donald Trump’s victory in the US election is accelerating merger activity. According to advisory firm Architect Partners, publicly reported M&A in the industry increased from $400 million to $1.2 billion in the fourth quarter.

Early in January, cryptocurrency broking FalconX announced that it had acquired derivatives startup Arbelos Markets. 

Since the beginning of the year, MoonPay, a cryptocurrency payment startup, and Chainalysis, a blockchain forensics company, have also acquired businesses. 

Trump, a former crypto critic, has appointed officials who are seen as supportive of the digital asset sector and has pledged to make America a key player in the field. 

That represents a dramatic reversal from the previous two years when the SEC clamped down on the sector after Sam Bankman-Fried’s exchange, FTX collapsed. 

Deribits as the Company

Retail investors are still being served via a Panamanian company that is now acting as a broker member of Deribit FZE, but as of this month, all qualifying and institutional investors are now direct clients of Deribit FZE in Dubai. The parent firm of every Deribit entity is based in the Netherlands.

Also Read: Deribit To Integrate Ethena’s USDe As Margin Collateral, ENA Price Surges Over 10%