Robinhood acquires Bitstamp in $200m deal to strengthen its crypto offering

In a strategic move to position itself in the crypto market, Robinhood, the popular trading platform, has announced its intention to acquire Bitstamp, one of the world’s oldest and most respected crypto exchanges, in an all-cash deal worth $200 million.

Robinhood acquires Bitstamp in $200 million deal

Despite the regulatory turmoil surrounding its crypto activities, Robinhood Markets, known for its online brokerage services, has concluded this major agreement to acquire the exchange platform Bitstamp Ltd. With this transaction worth $200 millionRobinhood aims to accelerate its global expansion and strengthen its presence in the institutional cryptocurrency market.

This acquisition, which is expected to be completed in the first half of 2025, subject to approvals regulatory approvals, will enable Robinhood to integrate the established Bitstamp as well as its extensive global licenses, significantly expanding the company’s crypto offerings.

Robinhood targets international expansion with Bitstamp

Founded in 2011, Bitstamp has a strong presence in Luxembourg, the UK, Slovenia, the USA and Singapore. With more than 50 active licenses and registrations, this strategic acquisition will strengthen Bitstamp’s Crypto presence. Robinhood in the European Union, the United Kingdom, the United States and Asia, enabling it to attract a more diversified customer base.

In addition, the proven institutional offerings of Bitstamp such as its white-label solution, loans and staking, will complement the services offered by Robinhood on the institutional market. The main spot exchange for Bitstamp offering over 85 tradable assets and products, will also expand the crypto offerings of Robinhood.

However, this acquisition comes at a time of regulatory tension for Robinhood. The company is currently the subject of an in-depth review of the Securities and Exchange Commission (SEC) regarding its crypto activities. It recently received a Wells Notice from the SEC, signaling possible enforcement action for alleged securities law violations.

Despite these regulatory challenges, Robinhood saw significant growth in its crypto trading volumes in the first quarter of 2024, with a 224% year-on-year increase to $36 billion. This growth contributed to a 59% increase in its transaction-based revenues, testifying to investors’ growing interest in cryptos.