Robinhood Expands Global Crypto Reach with $200M Bitstamp Acquisition
Trading platform Robinhood has announced its plan to acquire Bitstamp, a leading cryptocurrency exchange, for $200 million in an all-cash deal. This strategic acquisition aims to bolster Robinhood’s global presence in the crypto market and attract institutional clients by leveraging Bitstamp’s robust infrastructure and industry-leading products. The transaction, expected to close in the first half of 2025, was facilitated by Barclays Capital and Galaxy Digital, highlighting the high-level professional guidance involved in the deal.
Johann Kerbrat, General Manager of Robinhood Crypto, emphasized the significance of this acquisition, stating, “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. Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”
We’re accelerating Robinhood Crypto’s worldwide expansion. Robinhood has officially entered into an agreement to acquire @Bitstamp, a global cryptocurrency exchange with customers across the EU, UK, US and Asia.
More details: https://t.co/wk3x02z0rU pic.twitter.com/aadKzhCxlx
— Robinhood (@RobinhoodApp) June 6, 2024
Robinhood assured that there will be no layoffs or staff changes, as both companies will merge their operations to maintain consistent service, security, and reliability for customers. The company highlighted its commitment to transparency throughout the integration process.
This merger is crucial for attracting retail investors to the crypto market, particularly in the United States, where Coinbase holds a significant market share. Robinhood’s acquisition of Bitstamp not only underscores its commitment to the crypto sector but also introduces new competition to the retail crypto market.
“It accelerates our plans for international expansion, particularly in crypto," says Robinhood CEO @vladtenev on what excites him about acquiring @Bitstamp. "Second it brings an exchange to Robinhood." pic.twitter.com/mCwqDlLtBy
— Squawk Box (@SquawkCNBC) June 6, 2024
The acquisition marks Robinhood’s foray into the institutional crypto business. By utilizing Bitstamp’s offerings, including the white-label solution Bitstamp-as-a-service, institutional lending, and staking, Robinhood gains access to an established crypto infrastructure. Bitstamp’s core spot exchange, which features over 85 tradable assets, along with its staking and lending products, will significantly enhance Robinhood’s cryptocurrency portfolio.
This strategic move positions Robinhood as a formidable player in the global crypto market, poised to innovate and expand its services to meet the growing demands of both retail and institutional investors.
