Robinhood to Acquire Bitstamp for $200 Million All-Cash Deal

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Key Takeaways

  • The $200 million all-cash acquisition deal is expected to close in the first half of 2025
  • Barclays Capital Inc. served as exclusive financial advisor to Robinhood

In a move directed at expanding its cryptocurrency offerings, online trading platform Robinhood announced on Thursday, June 6th, 2024, that it has agreed to acquire Luxembourg-based crypto exchange Bitstamp for $200 million in cash. 

The deal, expected to close in the first half of 2025, will see Robinhood absorb Bitstamp’s extensive experience and global reach. Bitstamp, founded in 2011, boasts a presence in Europe, Asia, and the US, along with over 85 tradable cryptocurrencies and a reputation for strong regulatory compliance.

“The acquisition of Bitstamp is a major step in growing our crypto business,” said Johann Kerbrat, general manager of Robinhood Crypto. “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.”

According to the press release, Barclays Capital Inc. served as exclusive financial advisor to Robinhood while Galaxy Digital Partners LLC served as exclusive financial advisor to Bitstamp.

This acquisition comes at a time of both opportunity and challenge for Robinhood’s crypto business. While the company’s crypto offerings fueled a strong first-quarter performance in May, it also faces regulatory hurdles in the US.

Last month, Robinhood received aย Wells Noticeย from the Securities and Exchange Commission (SEC) which stated that the regulatory watchdog had made a โ€œpreliminary determinationโ€ to file an enforcement action against Robinhood for alleged violations of federal laws governing securities brokers.

Despite these challenges, Robinhood sees Bitstamp as a key to overcoming them. “We are in our early days in the EU and we are excited to keep expanding there and beyond. The acquisition of Bitstamp will accelerate our global expansion,” said Kerbrat.

By integrating Bitstamp’s exchange functionality, Robinhood will be able to offer its users a significantly wider range of cryptocurrencies to trade, making it more competitive within the broader market.

JB Graftieaux, CEO of Bitstamp, assured continued user focus, stating, “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.”

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Saniya Raahath
Saniya Raahath

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