Deribit, a Popular Options Trading Platform, Draws Interest from Potential Buyers
According to Bloomberg News, Deribit, a leading options trading platform, is exploring strategic opportunities with the help of FT Partners. The news was reported on January 14, citing sources familiar with the matter.
The platform has experienced a meteoric rise in trading activity, with its total trading volume nearly doubling to $1.2 trillion in 2024. As of this year, Deribit services institutional clients directly through its Dubai-based entity, Deribit FZE, while a Panamanian subsidiary manages retail clients.
FT Partners’ Expanded Role
FT Partners, initially retained in early 2023 to arrange secondary stock sales for Deribit’s investors, has expanded its role to assess potential bids for the entire firm. The sources stated that Kraken, a major cryptocurrency exchange, had reportedly explored acquiring Deribit but ultimately decided not to proceed.
One source estimates Deribit’s valuation could range from $4 billion to $5 billion. FT Partners and Kraken declined to comment.
Deribit’s Trading Volume
According to CoinGlass data, Deribit had registered over $26 billion in monthly trading volume for Bitcoin (BTC) and Ethereum (ETH) options contracts as of January 13.
Surging M&A Activity in the Crypto Sector
The interest in Deribit comes amid a surge in crypto-related mergers and acquisitions (M&A), fueled in part by a post-election rally in digital asset markets.
Publicly announced M&A activity in the crypto sector climbed to $1.2 billion in the fourth quarter of 2024, a sharp increase from $400 million during the same period a year earlier, according to Architect Partners.
Recent Deals
Recent deals in the crypto sector include the acquisition of derivatives startup Arbelos Markets by crypto brokerage FalconX and deals by MoonPay and Chainalysis.
President-Elect Donald Trump’s Stance on Digital Assets
President-elect Donald Trump’s favorable stance toward digital assets has further buoyed the industry. He has promised to position the US as a global hub for crypto innovation.
Conclusion
Deribit’s strategic exploration and the potential sale of the company will likely play a significant role in the next phase of crypto M&A development.
FAQs
A: Deribit is a popular options trading platform.
A: The interest in Deribit is due to its meteoric rise in trading activity, with its total trading volume nearly doubling to $1.2 trillion in 2024.
A: FT Partners is a financial advisory firm that was initially retained to arrange secondary stock sales for Deribit’s investors. It has since expanded its role to assess potential bids for the entire firm.
A: One source estimates Deribit’s valuation could range from $4 billion to $5 billion.
A: Kraken is a major cryptocurrency exchange that reportedly explored acquiring Deribit but ultimately decided not to proceed.
