Robinhood to acquire crypto exchange Bitstamp for $200 million

on Jun 6, 2024
  • Robinhood is to acquire crypto exchange Bitstamp in a cash deal worth $200 million.
  • The trading platform will use this deal to expand and accelerate the expansion of Robinhood Crypto.
  • Robinhood expects to close this deal in the firs half of 2025.

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Robinhood Markets will acquire crypto exchange Bitstamp for about $200 million in cash, the trading platform announced on Thursday.

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Robinhood to acquire Bitstamp

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According to a press release published on Thursday, Robinhood expects a deal for Bitstamp to be closed early next year.

The company will use the acquisition to accelerate the global expansion of its crypto business via Robinhood Crypto, with Bitstamp’s acquisition giving Robinhood further traction across the EU, UK, US and Asia.

Bitstamp, founded in 2011 and one of the top regulated crypto exchanges, has offices in the UK, Singapore, US, Luxembourg and Slovenia.

“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,” Johann Kerbrat, general manager of Robinhood Crypto, said in the press release.

Kerbat added that the strategic acquisition puts Robinhood in a better position as it looks to expand its presence outside of the United States. The deal will also play a huge role in the company’s quest to onboard more institutional customers.

Expanding global footprint in crypto

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As well as powering “Robinhood’s first institutional business” this move allows the trading app to tap into Bitstamp’s offerings such as lending, staking and the white label solution Bitstamp-as-a-service.

Robinhood also eyes leveraging Bitstamp’s spot exchange, which offers more than 85 tradable assets, to bolster Robinhood’s Crypto offering.

“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,” Bitstamp CEO JB Graftieaux added in a statement.

When is the deal closing?

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According to details shared in today’s announcement, Robinhood expects to close this deal in the first half of 2025. The company disclosed that the acquisition could be for around $200 million in cash.

However, this will be subject to customary closing conditions and price purchase adjustments.

Notably, this announcement comes roughly a month after Robinhood said the US Security and Exchange Commission (SEC) was looking at an enforcement action against the trading firm’s crypto unit.

The SEC issued a Wells Notice to the platform in early May.

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