Blockchain
Bitstamp to be sold to Robinhood in a $200 million deal
Trading platform Robinhood (HOOD) has agreed to acquire cryptocurrency exchange Bitstamp with the aim of expanding its presence globally and attracting institutional clients by offering new products, the company announced on Tuesday.
According to the press release, the $200 million, all-cash deal is expected to close in the first half of 2025. Barclays Capital and Galaxy Digital advised Robinhood and Bitstamp on the sale, the companies said.
“The acquisition of Bitstamp is an important step in the growth of our cryptocurrency business,” said Johann Kerbrat, CEO of Robinhood Crypto. “Bitstamp’s long-standing and highly trusted global exchange has shown resilience through market cycles… Through this strategic combination, we are better positioned to expand our presence outside of the United States and welcome institutional clients to Robinhood ”.
Bitstamp is a UK-based cryptocurrency exchange founded in 2011 and quickly became one of the largest cryptocurrency exchanges in Europe. It currently offers spot trading of over 85 cryptocurrencies and other crypto products including institutional lending and staking, among others. It is one of the most regulated on the market and, according to the release, holds more than 50 licenses and registrations globally. It also undergoes regular audits by a global Big Four accounting firm.
Robinhood has started offering cryptocurrency trading to customers in the European Union in December.
“Bringing Bitstamp’s platform and expertise to the Robinhood ecosystem will provide users with an enhanced trading experience with an ongoing commitment to compliance, security and customer centricity,” said JB Graftieaux, CEO of Bitstamp, who together with the rest of the management team will remain in place after the sale.
The deal could increase competition in the cryptocurrency trading market as Robinhood’s international expansion could take more market share away from companies like Coinbase (COIN), which also pushing to grow outside of North America.