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Robinhood Expands European Footprint with Acquisition of Crypto Exchange Bitstamp

source-logo  coinedition.com 06 June 2024 15:45, UTC

Robinhood Markets has agreed to acquire Bitstamp, a cryptocurrency exchange, for $200 million in cash. This acquisition marks Robinhood’s largest deal to-date and as part of its expansion into cryptocurrency offerings.

Bitstamp, founded in 2011, brings over 85 crypto assets and significant regulatory approvals to Robinhood’s platform. The deal will enhance Robinhood Crypto’s growth and facilitate its global expansion, especially in Europe and Asia. Despite regulatory challenges in the U.S., Robinhood remains committed to engaging with regulators.

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.

More details: https://t.co/wk3x02z0rU pic.twitter.com/aadKzhCxlx

— Robinhood (@RobinhoodApp) June 6, 2024

Robinhood’s move to acquire Bitstamp comes at a time when the firm is recording significant growth in its crypto trading revenue. For the first quarter, the revenue grew to $126 million from $38 million the previous year. Also, it reported that the total value of cryptocurrencies held by the company reached $26 billion by the end of March. This acquisition is expected to accelerate this growth, building on the existing infrastructure and compliance of Bitstamp.

Despite this growth, Robinhood has faced regulatory troubles in the U.S. Last month the company received a Wells notice from the SEC indicating a possible enforcement action. This notice points to the SEC’s plans to sue Robinhood over securities law violations. However, Robinhood remains undeterred and is actively engaging with regulators to address these concerns.

The acquisition is consistent with Robinhood’s strategic plan of evolving from a basic trading application. In the last year, Robinhood added retirement accounts, rolled out a credit card, and announced plans to also offer futures trading. These strategies aim to establish Robinhood as a one-stop provider for financial services.

Robinhood’s acquisition of Bitstamp is strategic in a way that it aims to strengthen the company’s position in the digital asset markets. The deal is anticipated to be completed in the first half of 2025.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

coinedition.com