Crypto Exchange Deribit Is Exploring Potential for Acquisition at $5 Billion Valuation

Key Points:

  • Crypto exchange Deribit is working with Financial Technology Partners to explore acquisition offers.
  • Cryptocurrency sector mergers and acquisitions rose significantly, with disclosed M&A activity reaching $1.2 billion in Q4 2023, driven by market resurgence.
Deribit, the world’s leading platform for Bitcoin and Ether options trading, is reportedly considering potential acquisition offers with the help of a financial adviser.
Crypto Exchange Deribit Is Exploring Potential for Acquisition at $5 Billion Valuation

Read more: Bitcoin ETF Options Makes Important Progress After New CFTC Rules

Crypto Exchange Deribit Considers Acquisition Offers Amid $4-5 Billion Valuation

According to Bloomberg, the crypto exchange Deribit has hired financial technology partners to weigh strategic options.

Financial Technology Partners was first hired in early 2023 to facilitate secondary stock sales for existing investors but has since seen its mandate widened to include dealing with potential bids for the whole company. Sources close to the situation said Deribit could be valued between $4 billion and $5 billion or more.

While interest in Deribit has mounted, not everyone who came asking has opened their wallets. For instance, Kraken, a top digital asset exchange, weighed acquiring it but eventually walked away from discussions, according to an individual with direct knowledge of the matter.

Major Industry Deals Point to Fast-Tracking Consolidation

The review of the options by crypto exchange Deribit comes amid a resurgence of the crypto market, which is heating up merger and acquisition activity. Publicly disclosed M&A in the sector jumped to $1.2 billion in the fourth quarter of last year from $400 million in the same three months a year earlier, according to advisory firm Architect Partners.

That set the tone for the year, with several notable acquisitions already announced in January, including crypto brokerage FalconX announcing the acquisition of derivatives startup Arbelos Markets, among others such as crypto payments company MoonPay and blockchain forensics firm Chainalysis.

4.8/5 - (407 votes)