Coinbase had a notable Thursday, announcing its intention to acquire crypto options platform Deribit before releasing its Q1 earnings. The exchange reported total revenues of $2 billion, a decline of 10% from the previous quarter, with trading revenue falling nearly 19% to about $1.3 billion. Nonetheless, subscription and service revenues grew by 9% to approximately $700 million. Analysts provided mixed responses to the acquisition, with some suggesting it positions Coinbase favorably in the derivatives market. Coinbase CFO Alesia Haas indicated that Deribit has historically positive adjusted EBITDA, suggesting financial benefits from the acquisition. Despite optimism, Morningstar's analyst Michael Miller maintained a cautious stance, stating that the deal does not fundamentally change his view on Coinbase. He noted challenges ahead with the potential decline in revenue from blockchain rewards in Q2, estimating subscription and services revenue to slide between $600 million and $680 million. Conversely, Oppenheimer's Owen Lau presented a bullish outlook with a price target of $269 for COIN, albeit lowered from $279 due to macro uncertainties. The outcome of upcoming legislative efforts and trade tensions remains critical for Coinbase's trajectory.

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