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Robinhood to acquire crypto exchange Bitstamp in $200M deal

Robinhood acquires Bitstamp in a $200M deal. Set to close in early 2025, this deal promises to expand Robinhood’s reach and presence in the crypto cryptocurrency market.

  • Marina Mouka
  • June 10, 2024
  • 3 minutes

Robinhood, the commission-free stock trading platform, has announced agreement to acquire Bitstamp, a global cryptocurrency exchange, for approximately $200 million in cash. This move is expected to close in the first half of 2025, pending regulatory approvals. The acquisition aims to bolster Robinhood’s presence in the cryptocurrency market and marks its first foray into institutional business.

With offices in Luxembourg, the UK, Slovenia, Singapore, and the US, Bitstamp holds over 50 active licenses and registrations worldwide. The exchange is known for its reliable trade execution, deep order books, and industry-leading API connectivity, making it a preferred choice for institutional clients. Bitstamp’s offerings include over 85 tradable assets, staking, and lending services, which will significantly enhance Robinhood’s crypto portfolio.

Robinhood’s acquisition of Bitstamp aligns with its strategic goals of expanding its presence in overseas markets and developing its institutional business. The deal will allow Robinhood to tap into Bitstamp’s extensive customer base across the EU, UK, US, and Asia. This move comes at a time when the crypto market is experiencing a surge, with Bitcoin prices climbing over 60% since the start of the year. Robinhood’s crypto revenue has also seen a three-fold increase in the first quarter of 2024.

However, the broader fintech sector has faced challenges, including regulatory scrutiny. Robinhood recently received a Wells notice from the US Securities and Exchange Commission (SEC) over its token offerings, indicating potential enforcement action. The SEC has argued that crypto tokens should be considered securities, a stance that has faced legal challenges from the crypto industry.

Robinhood acquires Bitstamp: What the deal will bring

The acquisition of Bitstamp is expected to transform Robinhood’s crypto operations. By sourcing crypto from Bitstamp, Robinhood can potentially invite its customers to trade on Bitstamp’s platform, which offers a wider range of digital tokens compared to Robinhood’s current offerings. This integration will also provide Robinhood with established infrastructure and industry-leading products to cater to institutional investors.

There is also the question of whether Bitstamp will remain a stand-alone brand or be integrated into Robinhood’s ecosystem.

Johann Kerbrat, General Manager of Robinhood Crypto, emphasised the strategic value of the acquisition, stating, “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors.” Kerbrat went on to emphasise the user benefits: “Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”

JB Graftieaux, CEO of Bitstamp, commented, “As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most-trusted and transparent crypto platforms worldwide. Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”

Financial advisors for the deal include Barclays Capital for Robinhood and Galaxy Digital Partners for Bitstamp. As the acquisition progresses, both companies will need to navigate regulatory hurdles and ensure a seamless integration to maintain trust and reliability among their customers.