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Robinhood, $200 million deal for Bitstamp
Exchange platform Robinhood Markets said Thursday it has agreed to buy cryptocurrency exchange Bitstamp for about $200 million in cash, accelerating a broader push into digital assets with its biggest deal yet.
The 11-year-old trading app, popular among retail traders, has sought to expand its product offering to become a full-fledged financial services provider.
The acquisition of Bitstamp, founded in 2011 and which holds 50 active licenses and registrations globally, puts Robinhood in direct competition with industry giants such as Binance and Coinbase.
Bitstamp will fuel Robinhood Crypto’s growth and is set to become its first institutional asset. Bitstamp’s flagship spot exchange, popular in Europe and Asia, has over 85 tradable assets and includes products such as staking and lending.
“We are early days in the EU and are excited to continue expanding there and beyond. The acquisition of Bitstamp will accelerate our global expansion,” Johann Kerbrat, vice president and general manager of Robinhood Crypto, told Reuters.
The deal, expected to close in the first half of 2025, comes at a time when Robinhood’s cryptocurrency business is experiencing rapid growth but also faces regulatory hurdles in the U.S.
Kerbrat said the company plans to continue communicating with regulators as it moves forward.
Robinhood’s cryptocurrency business was the driving force behind a massive surge in first-quarter earnings in May, but that same week it had also revealed it had received a “Wells” notice from the U.S. Securities and Exchange Commission. The notice alerts you to possible imminent enforcement actions.
The markets regulator argued that crypto tokens should be considered securities and subject to its registration rules. Crypto firms, on the other hand, have accused the SEC of overreaching.
Robinhood shares have risen 69% this year after vowing to chase “profitable growth.” Analysts expect it to be poised for further gains amid a rebound in retail trading and growing adoption of cryptocurrencies.