Crypto Options Exchange Deribit Fields Acquisition Interest
Deribit, the dominant platform for Bitcoin and Ether options trading, is evaluating a potential sale, Bloomberg reported on Wednesday, citing sources familiar with the matter.
The company has reportedly engaged Financial Technology Partners LLC (FT Partners) to advise on this process. While FT Partners was initially brought on in early 2023 to assist with secondary stock sales for existing Deribit investors, their mandate has now expanded to include a broader strategic review, encompassing the assessment of potential bids for the entire firm.
This exploration comes as the cryptocurrency market experiences a resurgence, sparking renewed interest in mergers and acquisitions. This uptick in M&A activity is a notable shift from the previous year, which saw a significant downturn amid increased regulatory scrutiny.
According to advisory firm Architect Partners, publicly announced M&A activity in the crypto sector jumped to $1.2 billion in the fourth quarter of the previous year, compared to $400 million in the same period the year prior, Bloomberg reported. This data point underscores the increasing appetite for strategic consolidation within the industry.
While Deribit has not explicitly stated it is "for sale," the engagement of FT Partners for a comprehensive strategic review suggests the company is seriously considering various options to capitalize on the renewed market interest. Sources indicate that Deribit could command a valuation of $4 billion to $5 billion or more, reflecting its significant market share in the crypto options space. It has been reported that Kraken previously considered acquiring Deribit but ultimately did not proceed.
Deribit offers options, futures, and spot trading, and recorded substantial growth in trading volume last year. Total trading volume almost doubled to nearly $1.2 trillion, with options notional trading volume increasing by 99% to $743 billion in 2024. The platform’s success highlights the increasing sophistication of the cryptocurrency market, with traders utilizing options contracts to manage risk and execute more complex trading strategies.
The timing of Deribit’s exploration of a potential sale coincides with a more positive outlook for the crypto industry, influenced in part by the recent US election results and a perceived shift towards a more favorable regulatory environment.
Founded in 2016 by John and Marius Jansen and based in the Netherlands, Deribit has also recently restructured its operations, with institutional clients now serviced by Deribit FZE in Dubai and retail clients handled by a Panamanian broker member of Deribit FZE. The parent company remains based in the Netherlands.