Breaking: Robinhood to Acquire Bitstamp Crypto Exchange in $200 Million All-Cash Deal

Hassan Shittu

Last updated:

June 6, 2024 08:49 EDT | 2 min read

Robinhood Markets has announced an agreement to acquire Bitstamp Ltd., one of the oldest and most respected cryptocurrency exchanges, in a $200 million all-cash deal.

This acquisition aims to accelerate Robinhood’s global expansion and mark its entry into the institutional crypto business.

Although still subject to regulatory approvals and expected to close in the first half of 2025, the deal will expand Robinhood’s offerings with Bitstamp’s established crypto platform and extensive global licenses.

Bitstamp To Be Merged With Robinhood For More Crypto Offerings

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: pic.twitter.com/aadKzhCxlx

— Robinhood (@RobinhoodApp) June 6, 2024

Robinhood Markets, the well-known investing and trading platform, has agreed to acquire Bitstamp Ltd., a globally recognized cryptocurrency exchange, for approximately $200 million in cash.

Bitstamp was founded in 2011 and has a robust presence in Luxembourg, the UK, Slovenia, and the US, with recent approval for services in Singapore.

This strategic acquisition aims to accelerate Robinhood Crypto’s global expansion, leveraging Bitstamp’s over 50 active licenses and registrations. The deal will extend Robinhood’s reach across the EU, UK, US, and Asia, attracting a diverse customer base. Per JB Graftieaux, CEO of Bitstamp:

“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 eco will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”

The acquisition marks Robinhood’s entry into the institutional crypto business. Bitstamp has a solid reputation among institutional clients and is known for reliable trade ution, deep order books, and industry-leading API connectivity.

Additionally, Bitstamp’s institutional offerings, such as its white-label solution Bitstamp-as-a-service, institutional lending, and staking, will further amplify Robinhood’s position in the market.

Bitstamp’s core spot exchange, featuring over 85 tradable assets and products like staking and lending, will also expand Robinhood’s crypto offerings. Per Johann Kerbrat, General Manager of Robinhood Crypto:

“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.”

The final deal consideration is expected to be approximately $200 million in cash, subject to customary purchase price adjustments. The acquisition, subject to regulatory approvals and customary closing conditions, is anticipated to close in the first half of 2025.

Robinhood Growing Amid Regulatory Battle

Robinhood received a Wells Notice from the US Securities and Exchange Commission (SEC) last month stating that the agency may pursue enforcement action against the company for alleged violations of the Securities Exchange Act.

Following this notice, Robinhood announced its intention to challenge the SEC in court. CEO Vlad Tenev criticized the SEC’s actions, describing them as part of a broader regulatory crackdown that stifles innovation. He also mentioned that the SEC’s investigation focuses on cryptocurrency listings, custody, and platform operations, suggesting possible violations of the Securities Exchange Act.

The SEC’s preliminary determination to recommend this action relates to Robinhood’s cryptocurrency listings, custody practices, and platform operations.

This notice follows multiple investigative warnings received by Robinhood. The news of the Wells Notice led to a significant drop in Robinhood’s stock, falling over 5% last month.

Due to this, the SEC has been criticized for its aggressive enforcement approach toward digital assets, exemplified by a similar Wells Notice issued to Consensys regarding its Ethereum-focused application, MetaMask.

Despite all this regulatory scrutiny, Robinhood recently announced a significant increase in crypto trading volumes during the first quarter, surging 224% to $36 billion.

This growth drove a 59% year-over-year increase in the company’s transaction-based revenue, reaching $329 million, with crypto-related revenue rising 232% to $126 million. Robinhood reported a holding of $26.2 billion in users’ crypto assets, marking a 78% increase from the end of 2023.

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