Robinhood Markets Inc. will acquire the European cryptocurrency exchange Bitstamp Ltd. for $200 million. This move is a part of Robinhood’s expansion plan outside of its home market in the US and will bring a trusted and reputable institutional business to Robinhood. The deal is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory approvals.
Global cryptocurrency exchange Bitstamp was founded in 2011 and has offices in Luxembourg, the UK, Slovenia, Singapore, and the US. This acquisition will bring Bitstamp’s globally-scaled crypto exchange customers to Robinhood. According to its website, It has licences and registrations in European Union countries including Italy, Spain, the Netherlands and France.
The transaction comes about a month after the US Securities and Exchange Commission warned Robinhood that it faces an enforcement action over its own crypto business. Robinhood, which is best known for stock trading, disclosed in May that the SEC’s enforcement staff had sent the firm a Wells notice, indicating that it made an initial determination to recommend enforcement action.
“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,” said Johann Kerbrat, General Manager of Robinhood Crypto. “Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”
“As the world’s longest running cryptocurrency exchange, Bitstamp is known as one of the most-trusted and transparent crypto platforms worldwide,” said JB Graftieaux, CEO of Bitstamp. “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.”
Robinhood has sought to expand its offerings beyond those geared toward retail traders in the US, adding a credit card and retirement products. But it’s also eyeing geographic diversity, rolling out its commission-free trading app in the United Kingdom this year.
Read More: Read more about the acquisition.
Shares of Robinhood rose in premarket trading after the deal announcement, gaining 2.6% as of 8:50 a.m. New York time.
Robinhood expects the final deal consideration to be approximately $200 million in cash, subject to customary purchase price adjustments. The acquisition is subject to customary closing conditions, including regulatory approvals, Barclays Capital Inc. advised Robinhood in the deal, the statement said, and Galaxy Digital Holdings Ltd. advised Bitstamp, as released on Bitstamp’s site.
