Coinbase Stock Is Getting A Boost Ahead Of Q1 Earnings: What's Going On?

Coinbase Global Inc COIN shares are surging Thursday morning following reports the company has agreed to acquire a major crypto options platform.

What Happened: Coinbase has reached a deal to acquire Deribit for roughly $2.9 billion, according to a Wall Street Journal report. The company operates the largest options trading platform for Bitcoin BTC/USD and Ethereum ETH/USD globally.

The move from Coinbase aims to boost the company’s global growth and cement its place as the most comprehensive player in the crypto derivatives market, Coinbase’s vice president of institutional product, Greg Tusa,r reportedly said.

The report indicates that the deal includes $700 million in cash and 11 million shares of Coinbase Class A common stock.

Deribit reportedly saw its trading volumes double in 2024 as more institutional investors flocked to the platform in the wake of the U.S. presidential election. Coinbase also reported an 88% quarter-over-quarter surge in revenue for the fourth quarter earlier this year, bolstered by strong trading activity.

Coinbase beat analyst estimates on the top and bottom lines in the fourth quarter as transaction revenue surged 172% on a quarter-over-quarter basis. Coinbase said at the time that it was seeing strong momentum under the new administration.

From Last Quarter: Coinbase Q4 Earnings Highlights: Trading Platform Welcomes ‘Dawn Of A New Era For Crypto’

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Coinbase is due to report first-quarter financial results after the market close on Thursday. Analysts expect the company to report earnings of $2.11 per share and revenue of $2.12 billion, according to estimates from Benzinga Pro.

Company executives will hold a conference call at 5 p.m. ET Thursday to discuss the quarter with investors and analysts.

COIN Price Action: Coinbase shares were up 4.53% at $205.55 at the time of publication Thursday, according to Benzinga Pro.

Coinbase shares may also be getting a lift on Thursday amid strong gains across the broader crypto market. Bitcoin was last up approximately 2.51% over a 24-hour period, trading at $99,285. Ethereum was up about 7.75% at $1,967.62 at the time of publication.

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