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Robinhood begins acquisition of cryptocurrency exchange Bitstamp
The latest news from the cryptocurrency market talks about the financial broker Robinhood and the 200 million dollar offer made for the acquisition of the historic digital asset exchange Bitstamp.
Both parties have reportedly reached an agreement, but the acquisition will not be concluded before the necessary due diligence research and confirmation by financial market regulators. The deal is expected to close in the first half of 2025.
Let’s see everything in detail below.
Robinhood wants to acquire cryptocurrency exchange Bitstamp
Robinhood Market Inc., a US financial services company, has just signed an agreement with the famous cryptocurrency exchange platform Bitstampwhich will see the former acquire the latter for an amount of $200 million in cash.
This is a strategic move that positions Robinhood at the center of the crypto landscape more than it already is, expanding towards new horizons still little explored by the Californian company.
In the world of finance, the terms bull AND bear they are often used to describe market trends. A bull the market is characterized by increasing prices, while a bear market is characterized by falling prices. Investors need to understand these concepts to make informed decisions.
Bitstamp, born in 2011, represents one of the oldest crypto exchanges in circulation which can boast the presence of the broader story regarding the BTC-USDT chartas well as around 85 different trading pairs that can be traded and other CeFi products.
Furthermore, it did offices in various countries around the world, such as Luxembourg, the United Kingdom, Slovenia, Singapore and the United Statesand contains more than 50 licenses and registrations active globally.
Thanks to this acquisition agreement, Robinhood’s crypto offering, which also includes the possibility of investing in other financial markets, is destined to expand, with a focus on the European territory.
The broker will present for the first time institutional activities in the Bitcoin world, taking advantage of the exchange’s customer base, reliable trade execution, depth of various books and advanced API connectivity.
As part of the benefits under the agreement, Bitstamp will also offer the Bitstamp-as-a-service white label solution, institutional lending and multi-asset staking service to Robinhood.
In a press conference, Johann Kerbrat, CEO of Robinhood Crypto, stated that:
“The acquisition of Bitstamp is an important step in the growth of our cryptocurrency business. Through this strategic combination, we are better positioned to expand our presence outside the United States and welcome institutional clients to Robinhood.”
JB Graftieaux, CEO of Bitstamp, reiterated the seriousness and professionalism with which his company has been managed over the years, highlighting the advantages that the buyer will be able to enjoy:
“Bringing Bitstamp’s platform and expertise to the Robinhood ecosystem will provide users with an enhanced trading experience with an ongoing commitment to compliance, security and customer centricity.”
This is certainly one of the most interesting acquisitions that have occurred in the crypto world in recent yearsdestined to positively revolutionize Robinhood’s trading activity in the sector.
Now before the deal can be concluded with the payment of a sum of 200 million dollars in cash it will be necessary to wait for all the canonical procedures of due diligence and authorization by market regulatory bodies.
We probably expect it the merger will start in the first half of 2025.
Robinhood (HOOD) stock analysis.
Robinhood’s acquisition of the historic crypto exchange Bitstamp could have a significantly positive effect on the HOOD share pricewhich are recording an increase in prices around 22.22 dollars on the American pre-market of the Nasdaq.
The financial intermediary’s stock has grown significantly since January 2024, marking an increase of 70%, enough to break the lateral trend that had continued undisturbed in the previous two.
After being listed on the markets in July 2021, HOOD went through a phase of around a year in which sales took over, leading to a depreciation of the asset of around 87%, followed by a lateral trend which only stopped in the last months.
Now Robinhood stock is trading at a price not seen since December 2021opening new ones bullish price scenarios.
Zooming in and moving down to the daily time horizon, we can clearly see how prices have undergone a strong acceleration starting from December 2023 with a substantial parallel increase in volumes traded.
The 50 EMA supported the price of HOOD with every bear attempt to declinemore precisely in the months of February and May, pushing prices to higher levels and providing the right context for accumulation.
From now to the next few days it is likely that the stock will continue to grow in a speculative manner, probably attacking the $25 area, on which a retracement phase could then arrive given the distance from the moving averages and the market situation. CSR approaching the overbought zone.
Anyway the overall outlook remains bullishwith volumes that support much of the bullish movement of recent months.
