Robinhood initiates the acquisition phase of the crypto exchange Bitstamp

The latest news from the crypto market talks about the financial broker Robinhood and the $200 million offer made for the acquisition of the historic digital asset exchange Bitstamp.

Both parties would have reached an agreement, but the acquisition will not be closed before the necessary due diligence research and before the confirmation of the financial market regulatory authorities. It is expected that the deal will go through in the first half of 2025.
Let’s see everything in detail below.

Robinhood wants to acquire the crypto exchange Bitstamp

Robinhood Market Inc., società statunitense di servizi finanziari, ha appena firmato un accordo con la famosa piattaforma di scambio in crypto Bitstamp, che vedrà la prima acquisire la seconda per un importo di 200 milioni di dollari cash.

It is a strategic move that positions Robinhood at the center of the crypto landscape more than it already is, expanding towards new horizons still little explored by the Californian company.

In the world of finance, the terms bull and bear are often used to describe market trends. A bull market is characterized by rising prices, while a bear market is marked by falling prices. Investors need to understand these concepts to make informed decisions.

Bitstamp, born in 2011, represents one of the oldest crypto exchanges in circulation that can boast the presence of the widest history regarding the BTC-USDT chart, in addition to about 85 different trading pairs that can be traded and other CeFi products.

Furthermore, it has offices in various countries around the world, such as Luxembourg, United Kingdom, Slovenia, Singapore, and United States, and holds over 50 licenses and registrations active globally.

Thanks to this acquisition agreement, Robinhood’s crypto offering, which provides the possibility to invest in other financial markets as well, is set to expand, with a focus on the European territory.

The broker will introduce for the first time institutional activities in the Bitcoin world, leveraging the exchange’s client base, reliable trading execution, the depth of various books, and advanced API connectivity.

As part of the benefits provided by the contract, Bitstamp will also offer Robinhood the Bitstamp-as-a-service white label solution, institutional loans, and the multi-asset staking service.

In a press conference, Johann Kerbrat, general manager of Robinhood Crypto stated that:

“The acquisition of Bitstamp is an important step in the growth of our crypto business. Through this strategic combination, we are better positioned to expand our footprint outside the United States and welcome institutional clients to Robinhood.”

On the other hand, JB Graftieaux, CEO of Bitstamp, reiterated the seriousness and professionalism with which his company has been managed over the years, highlighting the advantages that the buyer will enjoy:

“Bringing the platform and experience of Bitstamp into the Robinhood ecosystem will offer users an enhanced trading experience with a continued commitment to compliance, security, and customer centricity.”

It is definitely one of the most interesting acquisitions in the crypto world in recent years, destined to positively revolutionize Robinhood’s business activities in the sector.

Now before the deal can go through with the payment of a sum of 200 million dollars in cash, we will have to wait for all the canonical processes of due diligence and the authorization from the market regulatory bodies.

Likely we expect that the merger will be initiated in the first half of 2025.

Analysis of the Robinhood (HOOD) stock

The acquisition of the historic crypto exchange Bitstamp by Robinhood could have a significantly positive effect on the price of HOOD shares, which are recording an increase in quotations around 22.22 dollars in the US pre-market of the Nasdaq.

The stock of the financial broker has grown significantly since January 2024, marking a 70% increase, enough to break the lateral trend that had continued undisturbed in the previous two.

After the listing on the markets in July 2021, HOOD went through a phase of about a year in which sales took over, leading to a depreciation of the asset by about 87%, followed by a lateral pattern that was interrupted only in the last few months.

Now Robinhood’s stock is being traded at a price that hasn’t been seen since December 2021, opening up new bullish price scenarios.

Zooming in and moving down to the daily time frame, we can clearly see how the quotations experienced a strong acceleration starting from December 2023 with a substantial parallel increase in trading volumes.

The EMA 50 has supported the price of HOOD at every attempt of decline by the bear, more precisely in the months of February and May, pushing the quotations to higher levels and providing the right context for accumulation.

From here to the next few days, it is likely that the stock will continue to grow speculatively speaking, likely attacking the $25 area, on which a retracement phase could then arrive given the distance from the moving averages and the situation of the RSI approaching the overbought zone.

In any case the general outlook remains bullish, with volumes supporting much of the bullish movement of recent months.