Robinhood Markets has announced an agreement to acquire Bitstamp Ltd., one of the oldest and most respected cryptocurrency exchanges. 200 million USD in cash will accelerate Robinhood’s global expansion and mark its entry into the institutional crypto business.
The acquisition is subject to regulatory approval and is expected to close in the first half of 2025. The acquisition will add Bitstamp’s established crypto platform and extensive global licenses to Robinhood’s offering.
Bitstamp to merge with Robinhood for more crypto offerings
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.
Robinhood Markets, the well-known investment and trading platform, has agreed to acquire Bitstamp Ltd., a globally recognized cryptocurrency exchange, for approximately 200 million USD in cash.
Founded in 2011, Bitstamp has a solid presence in Luxembourg, the UK, Slovenia and the US, as well as a recently granted license to provide services in Singapore.
This strategic acquisition aims to accelerate Robinhood Crypto’s global expansion and leverage Bitstamp’s 50+ active licenses and registrations. The acquisition will expand Robinhood’s reach across the EU, UK, US and Asia and attract a diverse customer base. Per JB Graftieaux, CEO of Bitstamp:
“As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms globally. Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience, while maintaining our commitment to compliance, security and customer focus.”
The acquisition marks Robinhood’s entry into the institutional crypto business. Bitstamp has a strong reputation among institutional clients and is known for its reliable trade execution, extensive order book, and industry-leading API connectivity. In addition, Bitstamp’s institutional offerings, such as the white-label Bitstamp-as-a-Service solution, institutional lending, and staking, will further strengthen Robinhood’s position in the market. Bitstamp’s central spot exchange with over 85 tradable assets and products such as staking and lending will also expand Robinhood’s crypto offering. Per Johann Kerbrat, General Manager of Robinhood Crypto:
“The acquisition of Bitstamp is an important step in expanding our crypto business. Bitstamp’s highly trusted and long-established global exchange has proven resilient across market cycles.”
The final purchase price is expected to be approximately 200 million USD in cash, subject to customary purchase price adjustments. The acquisition is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.
Robinhood grows amid regulatory battle
Robinhood received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) last month , in which the agency said it may take enforcement action against the company for alleged violations of the Securities Exchange Act, and has subsequently announced plans to challenge the SEC in court. CEO Vlad Tenev criticized the SEC’s actions, calling them part of a broader regulatory move that stifles innovation. He also mentioned that the SEC’s investigation focuses on the platform’s cryptocurrency listing, custody, and operations, suggesting possible violations of the Securities Exchange Act.
The SEC’s preliminary decision to recommend this action relates to Robinhood’s cryptocurrency listings, custody practices, and platform operations. This notice follows several investigative alerts that Robinhood has received.
News of the Wells Notice caused a significant drop in Robinhood stock, which fell over 5% in the last month. The SEC has been criticized for its aggressive crackdown on digital assets, with one example being a similar notice from Wells to Consensys, which relates to the Ethereum application MetaMask.
Despite all of this regulatory scrutiny, Robinhood recently announced a significant increase in crypto trading volume in the first quarter, which increased 224% to $36 billion. This growth led to the company’s transaction-based revenue increasing 59% year-over-year to $329 million, with crypto-related revenue increasing 232% to $126 million. Robinhood reported a user holding of crypto assets of $26.2 billion, up 78% from the end of 2023.
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