Robinhood to Acquire Bitstamp Crypto Exchange in $200M Deal

Robinhood, the popular trading platform, has announced its plans to purchase the U.K.-based cryptocurrency exchange Bitstamp for $200 million. This strategic acquisition aims to expand Robinhood’s global presence in the cryptocurrency market and attract institutional clients with new product offerings.

The deal is an all-cash transaction expected to close in the first half of 2025. Both companies have committed to ensuring a seamless transition without disrupting their services.

Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the increasing customer demand for cryptocurrency products as a key driver behind the acquisition.

“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and longstanding 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,” said Kerbrat.

For this transaction, Barclays Capital Inc. acted as Robinhood’s exclusive financial advisor, while Galaxy Digital Partners LLC served as Bitstamp’s exclusive financial advisor.

Enhanced Trading Experience and Compliance

JB Graftieaux, CEO of Bitstamp, emphasized the benefits of the acquisition for users.

“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,” Graftieaux stated.

This acquisition will integrate Bitstamp’s institutional services into Robinhood’s offerings, including its white label solution, Bitstamp-as-a-service, institutional lending, and staking.

Bitstamp’s Presence Robinhood’s Crypto Journey

Founded in 2011, Bitstamp has established a strong presence in the cryptocurrency market with offices in Luxembourg, the UK, Slovenia, Singapore, and the US.

The exchange boasts over 50 active licenses and registrations worldwide, serving a diverse customer base across the EU, UK, US, and Asia. This global footprint could enhance Robinhood’s ability to attract and serve institutional clients.

On the other hand, Robinhood has been a strong advocate for cryptocurrency, being one of the first platforms to allow Dogecoin trading on its app. In 2021, 62% of its crypto revenue came from Dogecoin.

Additionally, Robinhood launched a cryptocurrency wallet in the same year, which quickly gained popularity among investors.

Worth noting, the announcement of the acquisition comes at a time when the Securities and Exchange Commission (SEC) is monitoring Robinhood’s crypto arm for allegedly violating securities laws.