Robinhood Acquires Bitstamp in $200 Million Deal, Expanding Crypto Presence in Overseas Markets
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 a deal worth around $200 million. This acquisition is expected to close in the first half of 2025 and will help Robinhood expand its presence in overseas markets.
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. 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 has a strong trade with institutions.
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted that the acquisition of Bitstamp will help Robinhood achieve its strategic goal of developing an institutional business to complement its consumer products. This move comes as Robinhood is rebounding from a challenging 2023 and posting record earnings in 2024.
The acquisition of Bitstamp by Robinhood also comes at a time of significant growth in the crypto markets, with Bitcoin’s price surging over 60% since the beginning of the year. This deal has the potential to transform Robinhood’s crypto operations by allowing the company to source crypto from its own exchange and expand its offerings to customers.
However, any plans by Robinhood to increase its crypto offerings in the U.S. may face scrutiny from the Securities and Exchange Commission, which has signaled its intention to sue the company over its token offerings. Despite this potential challenge, the acquisition of Bitstamp represents a major step forward for Robinhood in the crypto industry.
It remains to be seen whether Bitstamp will retain its brand or be rebranded as a Robinhood product after the deal closes next year. The acquisition comes after reports that Bitstamp was seeking funds to expand its operations, with CEO Jean-Baptiste Graftieaux stating that the company was not looking to sell itself.
Barclays Capital served as the financial advisor to Robinhood for the deal, while Galaxy Digital Partners advised Bitstamp. In a press release, Graftieaux expressed excitement about the acquisition, stating that it will enhance the trading experience for users while maintaining a focus on compliance, security, and customer-centricity.
