Robinhood has made a groundbreaking move by agreeing to acquire Bitstamp Ltd., a renowned cryptocurrency exchange, in a $200 million all-cash deal. This acquisition is set to propel Robinhood’s global expansion and establish its presence in the institutional crypto market. Pending regulatory approvals, the deal is expected to be finalized in the first half of 2025, enhancing Robinhood’s offerings with Bitstamp’s established crypto platform and wide-ranging global licenses.
Bitstamp, founded in 2011, has a strong presence in Luxembourg, the UK, Slovenia, and the US, with recent approvals for services in Singapore. This strategic acquisition aims to boost Robinhood Crypto’s global reach, utilizing Bitstamp’s extensive licenses and registrations. The merger will broaden Robinhood’s customer base across the EU, UK, US, and Asia. According to JB Graftieaux, CEO of Bitstamp, the acquisition signifies Robinhood’s entry into the institutional crypto sphere, leveraging Bitstamp’s reputation for reliable trade execution and industry-leading API connectivity.
Moreover, Bitstamp’s institutional offerings, such as its white-label solution and staking services, will further strengthen Robinhood’s market position. The deal also includes Bitstamp’s core spot exchange, featuring a variety of tradable assets and products like staking and lending, expanding Robinhood’s crypto offerings. Johann Kerbrat, General Manager of Robinhood Crypto, highlights that the final deal consideration is estimated to be around $200 million in cash, subject to customary adjustments, and is expected to be finalized in the first half of 2025.
Despite facing regulatory challenges, including a Wells Notice from the SEC, Robinhood remains resilient in the market. The notice, which may lead to enforcement action against the company for alleged violations, prompted Robinhood to announce its intention to challenge the SEC in court. CEO Vlad Tenev criticized the SEC’s actions, attributing them to a broader crackdown on innovation. The SEC’s investigation focuses on cryptocurrency listings, custody practices, and platform operations, highlighting potential violations of the Securities Exchange Act.
Despite regulatory pressures, Robinhood reported a significant increase in crypto trading volumes in the first quarter, surging 224% to $36 billion. This growth drove a 59% year-over-year increase in transaction-based revenue, reaching $329 million, with crypto-related revenue rising 232% to $126 million. Robinhood also noted a significant increase in users’ crypto assets, reaching $26.2 billion, marking a 78% increase from the end of 2023.
