Robinhood Acquires Bitstamp in $200 Million Deal to Expand Crypto Presence overseas
Robinhood Makes Major Move in Crypto Industry with Acquisition of Bitstamp
In a surprising move, Robinhood announced on Thursday that it has acquired Bitstamp, one of the world’s oldest cryptocurrency exchanges, in an all-cash deal expected to be worth around $200 million. The acquisition, set to close in the first half of 2025, will not only expand Robinhood’s presence in overseas markets but also mark a significant step towards developing an institutional business to complement its consumer products.
Bitstamp, which has been a key player in the crypto industry since 2011, has seen its market share decline in recent years despite having millions of customers worldwide. With its biggest market in Europe, Bitstamp also serves customers in the UK, Asia, and the U.S. The exchange holds 50 active licenses globally and conducts substantial trade with institutions.
The acquisition comes at a time when Robinhood is rebounding from a challenging 2023, with its shares hitting a low of $7. However, the company has since posted record earnings and announced a $1 billion stock buyback. Robinhood’s move towards diversifying its services beyond stock trading has been well-received, and the acquisition of Bitstamp aligns with the company’s strategy to expand its crypto offerings.
The deal also comes amidst a booming crypto market, with Bitcoin’s price surging over 60% since the beginning of the year. Robinhood has reported a three-fold increase in crypto revenue in the first quarter, indicating a growing demand for digital assets among its users.
With the acquisition of Bitstamp, Robinhood aims to enhance its crypto operations by sourcing digital assets from its own exchange and potentially offering a wider range of tokens, lending, and staking services to its customers. However, any plans to expand its crypto offerings in the U.S. may face scrutiny from the SEC, which has signaled its intent to sue Robinhood over its token offerings.
As for the future of Bitstamp, it remains uncertain whether the exchange will retain its brand or be rebranded as a Robinhood product. CEO Jean-Baptiste Graftieaux expressed optimism about the acquisition, stating that it will provide users with an enhanced trading experience while upholding compliance, security, and customer-centricity.
Barclays Capital and Galaxy Digital Partners served as financial advisors for Robinhood and Bitstamp, respectively, in the acquisition deal. The move marks a significant milestone for Robinhood as it continues to evolve and expand its presence in the rapidly growing crypto industry.
