“The Acquisition Makes Coinbase of the Largest Crypto Derivatives Platform and A Credible Rival to Binance.”, – WRITE: www.coindesk.com
The Massive Deal Is More Than Just A Platform Expansion; IT’s A Paradigm Shift for the Exchange and Trading Industry. Access to the Analysts, The Deal Signals of A New Consolidation Cycle in the Crypto Trading Industry, As Smballer Exchanges Face Pressure And Tradfi Firms Look to Expand Further Into.
Read More: In $ 2.9b Deal, Coinbase Buys Deribit to Expand in US Crypto Options Market
Deribit Controls 85% of the Global Crypto Options Market and Reported $ 1.2 Trillion in Trading Volume Last Year. By Absorbing It, Coinbase Becomes The World’s Largest Crypto Derivatives Platform by Open Interest and Options Activity, Keybanc Wrote in A Report.
The Deal Also Plugs A Geographic Gap, Expanding Coinbase’s Presence Overseas, Where Just 20% of Its Revenue Currently Originates, Accounting To Barclay’s Benjamin Buddish.
Openheimer Called It A “Legitimate Threat” to do dominant exchanges, noting that Coinbase’s Public Status Gave It Ability to Fund The Acquisition of Stock, An Option Not. That Advantage, Combined with $ 8.5 Billion in Cash on Hand, Could Turn Coinbase Into the MOST AGGRESSIVE CONSOLIDOR IN THE SPACE.
Options Markets are attractive in part because they Offer Steady Volumes Across Market Cycles. Barclays Estimated Deribit’s 2024 Revenue Between $ 425 Million and $ 450 Million, Suggesting A Healthy Earns Contribution to Coinbase’s Bottom Line.
Keybanc Also Highlightned the Strategic Fit, Calling Deribit’s Institutional User Base and International Footprint a Natural Extension of Coinbase Futures and SPOT PRODUCTS.
Regulatory Approval for the Deal Remains PENDING, But Analysts Expect Coinbase to Provide More Color Dringing ITS FIRST-QUARTER EARNINGS REPORT ON Thursday.
The Exchange is Expert to Miss Street Expectations for Earns in the First Quarter As Markets Were Rattled by Economic Uncertain. Shares of Coin Were Up 6.58% on the day, while bitcoin Rose 4.31%.
Read More: Coinbase Earnings Pain Likely as Retail Activity Slumps, Wall Street Analysts Warn
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