Crypto dealmaking is hot.

Coinbase announced Thursday the biggest deal in the crypto industry to date when it said it would buy derivatives exchange Deribit in a $2.9 billion deal to move into the crypto options markets.

The deal is made up of $700 million in cash and 11 million shares of Coinbase, per a blog post.

“This isn’t just another addition; it’s foundational to our vision of creating the most comprehensive, compliant, and user-friendly derivatives platform globally,” the blog reads. “We’re excited about the path ahead and look forward to welcoming Deribit into the Coinbase family as we shape the future of crypto markets together.”

Deribit raised a $40 million venture round at a $400 million valuation from the likes of QCP Capital and Polybius Capital in 2022, per Crunchbase.

Big deal

The deal is just the latest big M&A move in crypto. While dealmaking numbers are small, size is increasing, as the reelection of President Donald Trump has reenergized the crypto market, with many expecting regulations to ease.

Last month, crypto payments firm Ripple said it would acquire brokerage house Hidden Road for $1.25 billion. In March, the U.S. Securities and Exchange Commission dropped a legal case against Ripple that accused it of conducting an illegal securities offering.

In March, cryptocurrency exchange Kraken said it would buy retail futures trading platform NinjaTrader for $1.5 billion.

Overall, venture funding to startups in the crypto and blockchain space rocketed to $3.8 billion in 220 deals in Q1, per Crunchbase data. The dollar figure represents a 138% jump from the previous quarter, which saw only $1.6 billion go to Web3 startups in 242 deals.

However, those numbers were propped up by cryptocurrency exchange Binance’s massive $2 billion investment from Abu Dhabi-based investment firm MGX. The deal is the single-largest investment into a crypto company.

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Illustration: Dom Guzman