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Robinhood bets big on crypto with $200M deal for Bitstamp
By Manya Saini
(Reuters) – Trading platform Robinhood Markets said on Thursday it had agreed to buy crypto exchange Bitstamp for about $200 million in cash, accelerating a broader push into digital assets with its largest-ever transaction .
Robinhood, whose shares were up 3.4% before the bell, was looking to expand its product offerings to become a full-fledged financial services provider.
The acquisition of Bitstamp, which was founded in 2011 and has 50 active licenses and registrations worldwide, puts Robinhood in direct competition with industry giants such as Binance and Coinbase.
Bitstamp’s leading spot exchange, popular in Europe and Asia, has over 85 tradable assets, and the deal is expected to fuel Robinhood Crypto’s growth.
“We are just getting started in the EU and we are excited to continue growing there and beyond. The acquisition of Bitstamp will accelerate our global expansion,” said Johann Kerbrat, vice -president and CEO of Robinhood Crypto, to Reuters.
The deal, expected to close in the first half of 2025, comes at a time when Robinhood’s crypto business is growing rapidly but also faces regulatory hurdles in the United States.
Kerbrat said the company intends to continue communicating with regulators as it moves forward.
Robinhood’s crypto business was responsible for a big jump in first-quarter profits in May, but that same week it also revealed it had received a so-called Wells notice from the state Securities and Exchange Commission -United regarding the tokens traded on its platform.
The notice is issued when the regulator plans to take enforcement action against a company.
The markets regulator argued that crypto tokens should be considered securities and subject to its registration rules. Crypto companies, on the other hand, have accused the SEC of going too far.
Robinhood’s stock has soared 69% this year after announcing plans to focus on “profitable growth.” Analysts expect it to be poised for more gains amid a resurgence in retail and growing crypto adoption.
Barclays Capital and Galaxy Digital were the exclusive financial advisors to Robinhood and Bitstamp, respectively.
(Reporting by Manya Saini in Bangalore; editing by Krishna Chandra Eluri and Shounak Dasgupta)