Coinbase Gobbles Up Deribit: A Survival Masterclass in the Crypto Jungle

Improvise Adapt Overcome: The Coinbase Way

Right listen up! The crypto world is a bit like the Amazon jungle – unpredictable teeming with life and if you don't adapt you'll end up as croc bait. Coinbase bless their cotton socks clearly understands this. They've just swallowed Deribit a massive crypto derivatives exchange based in Dubai for a staggering $2.9 billion! Now that's what I call a survival tactic. This isn't just about buying a company; it's about securing their position in the global crypto arena. Remember folks in the wild you either hunt or be hunted. And Coinbase? They're hunting.

Cash and Carry: Survival Kit Essentials

The deal's a mix of $700 million in cold hard cash and a whopping 11 million shares of Coinbase stock. It is expected to be done by the end of the year. Shares of Coinbase are going up by nearly 6%. It is what it is! Now most companies in a situation like this would just simply roll over and die. Coinbase however is built different! They knew they had to get their hands dirty and now they're ready to go all in.

Binance Beware: The Crypto King is Coming

Coinbase are setting their sights on global crypto domination! In other words they're going after Binance. Deribit apparently facilitated over $1 trillion in trading volume last year with about $30 billion of current open interest on the platform. And Coinbase is not holding back! If they want to get to the top they have to become the top!

EBITDA: The Energy Bar of the Crypto World

Here's where it gets really interesting. Deribit has a 'consistent track record' of generating positive adjusted EBITDA. In survival terms EBITDA is like that protein bar you find in your pack when you think you're about to collapse. It's pure unadulterated energy! Coinbase knows this deal will not only boost their revenue but also their profitability. Smart move chaps. Smart move.

Regulatory Tailwinds: A Helpful Gust of Wind

The crypto industry is getting a boost from the government. The support of the industry has fueled crypto M & A activity in recent weeks. Coinbase is just one of many that are making big moves to get to the top.

Balance Sheet Buffet: More Acquisitions on the Menu?

With $8.5 billion in cash still sitting pretty on their balance sheet as of December 31 Coinbase isn't just full; they're ready for seconds...and thirds! This cash and stock deal structure means they've got plenty of room to make even more acquisitions. If there's an opportunity you can bet your bottom dollar they'll be snapping it up. They're like a hungry bear after hibernation and the crypto market is their salmon run. The most important thing is they are showing that they are willing to go the distance!