Robinhood Markets, the trading platform known for its appeal to retail traders, announced on Thursday its acquisition of cryptocurrency exchange Bitstamp for approximately $200 million in cash. This move marks Robinhood’s largest deal yet and signals its accelerated foray into the digital asset space.
With a history dating back 11 years, Robinhood has been striving to diversify its offerings and evolve into a comprehensive financial services provider. By integrating Bitstamp, founded in 2011 and boasting 50 active licenses globally, Robinhood enters direct competition with industry giants like Binance and Coinbase.
Bitstamp’s robust infrastructure, which includes a core spot exchange popular in Europe and Asia offering over 85 tradable assets along with services like staking and lending, will bolster Robinhood’s crypto business. This acquisition positions Bitstamp as Robinhood’s inaugural institutional venture.
Johann Kerbrat, Vice President and General Manager of Robinhood Crypto, expressed enthusiasm about expanding into the EU and beyond, leveraging Bitstamp’s capabilities to facilitate global growth.
Expected to finalize in the first half of 2025, the deal comes amid both promising growth and regulatory challenges for Robinhood’s crypto endeavors. Despite a remarkable first-quarter earnings performance driven by its crypto business, Robinhood faces scrutiny from the U.S. Securities and Exchange Commission (SEC), highlighted by a ‘Wells’ notice indicating potential enforcement actions.
The SEC’s stance on crypto tokens as securities subject to regulation clashes with industry perspectives, underscoring ongoing tensions. Nevertheless, Robinhood remains committed to dialogue with regulators while pursuing its growth agenda.
Amidst a 69% surge in its stock this year, fueled by promises of ‘profitable growth’, Robinhood appears poised for further success amidst a resurgence in retail trading and increasing adoption of cryptocurrencies.
