Robinhood to Acquire Bitstamp in $200 Million Deal

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Robinhood Markets, the trading platform known for its user-friendly interface and commission-free trades, has announced its acquisition of Bitstamp, a prominent cryptocurrency exchange, for approximately $200 million in cash. This acquisition marks Robinhood’s largest-ever deal and signifies its accelerated push into the digital assets space.

With the aim of expanding its product offerings and evolving into a comprehensive financial services provider, Robinhood has been seeking avenues to diversify its business. The acquisition of Bitstamp, founded in 2011 and boasting 50 active licenses and registrations globally, positions Robinhood as a direct competitor to industry giants like Binance and Coinbase.

Bitstamp’s core spot exchange, particularly popular in Europe and Asia, offers trading for over 85 assets, further enhancing Robinhood’s crypto capabilities. Johann Kerbrat, vice president and general manager of Robinhood Crypto, expressed enthusiasm about the acquisition’s potential to fuel the company’s global expansion, especially in the European market and beyond.

The deal, anticipated to close in the first half of 2025, comes at a pivotal moment for Robinhood’s crypto business. While experiencing rapid growth, the company has encountered regulatory challenges in the United States. Despite regulatory hurdles, Robinhood remains committed to engaging with regulators as it navigates the evolving regulatory landscape.

Robinhood’s crypto business played a significant role in the company’s first-quarter earnings beat in May. However, regulatory scrutiny remains a concern, as evidenced by the Wells notice received from the U.S. Securities and Exchange Commission (SEC) regarding tokens traded on its platform. This notice signals potential enforcement action by the SEC, amid ongoing debates about the regulatory classification of crypto tokens.

Despite regulatory challenges, Robinhood’s stock has seen a notable surge of 69% this year, buoyed by its commitment to “profitable growth” and the resurgence of retail trading alongside increasing crypto adoption. Barclays Capital and Galaxy Digital served as the exclusive financial advisers to Robinhood and Bitstamp, respectively, in facilitating this landmark acquisition.