Robinhood’s $200M Bitstamp Deal to Expand it’s Crypto Services
Robinhood is poised to make a significant leap in the global cryptocurrency market with its agreement to acquire Bitstamp, a well-established global cryptocurrency exchange. This strategic acquisition aims to expand Robinhood Crypto’s reach beyond the US, leveraging Bitstamp’s strong presence across the EU, UK, US, and Asia. Expected to close in the first half of 2025, the deal is subject to customary closing conditions, including regulatory approvals.
We have some exciting news: we’re joining forces with Robinhood Crypto! Together, we will deliver an even better experience for all of our customers. Between the two of us, you’re in good hands 🤝
Founded in 2011, Bitstamp operates offices in Luxembourg, the UK, Slovenia, Singapore, and the US. The acquisition will enhance Robinhood’s capabilities by integrating Bitstamp’s extensive regulatory approvals, holding over 50 active licenses and registrations globally. This move will enable Robinhood to serve retail and institutional customers across multiple continents.
Introducing Institutional Business
The acquisition of Bitstamp marks Robinhood’s foray into the institutional business segment. Bitstamp has earned a solid reputation among institutional clients for its reliable trade execution, deep order books, and industry-leading API connectivity. With Bitstamp’s offerings, such as the white label solution Bitstamp-as-a-service, institutional lending, and staking, Robinhood is set to gain an established infrastructure and active relationships in the institutional crypto space.
Enhancing Crypto Offerings
Bitstamp’s core spot exchange, boasting over 85 tradable assets and its products, such as staking and lending, will significantly enhance Robinhood’s existing crypto offerings. This acquisition is about expanding services and integrating trusted and innovative solutions into Robinhood’s ecosystem.
Leadership Insights
Bitstamp’s team has established one of the strongest reputations across retail and institutional crypto investors. Thanks to the @Bitstamp team, our vision to bridge traditional finance to the new age with blockchain is getting closer. https://t.co/j7ElEUUqPE
Johann Kerbrat, Crypto General Manager of Robinhood, commented on the acquisition, highlighting the resilience and trust Bitstamp has built over the years. He stated, “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors.”
Bitstamp’s CEO, JB Graftieaux, echoed similar sentiments: “As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms worldwide. 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.”
Collaboration and Innovation
We believe crypto will fundamentally reorganize the financial system, and we’re acquiring @Bitstamp to accelerate our vision. Soon we’ll combine forces with Bitstamp’s global footprint, core spot exchange and industry-leading products like crypto-as-a-service, institutional…
Integrating Bitstamp’s team with Robinhood is expected to foster collaboration, innovation, and knowledge sharing across continents. Both companies assure their customers of continued high service, security, and reliability levels throughout this transition.
Financial Details
The acquisition deal is valued at approximately $200 million in cash, subject to customary purchase price adjustments. Barclays Capital Inc. served as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC advised Bitstamp.
Forward-Looking Statements and Cautionary Notes
This announcement includes forward-looking statements regarding Robinhood’s expectations for the acquisition. Factors such as economic conditions, regulatory changes, and the volatility of cryptocurrency prices could impact the actual outcomes. More detailed information about these risks is available in Robinhood’s filings with the SEC.
Conclusion
This acquisition signifies a pivotal moment for Robinhood as it aims to broaden its crypto service globally. By integrating Bitstamp’s established platform and expertise, Robinhood is set to enhance its offering and provide a robust and secure trading experience for retail and institutional investors worldwide.
