Robinhood Acquires Bitstamp: Boosting Crypto Presence with $200M Deal 🚀
Robinhood Markets, Inc. is set to acquire Bitstamp Ltd., a well-known global cryptocurrency exchange, in a deal worth approximately $200 million. This move aims to strengthen Robinhood’s global presence in the crypto market and also marks its entry into the institutional business, as reported by GlobeNewswire.
Expanding Global Reach 🌍
Bitstamp, established in 2011, holds over 50 active licenses and registrations worldwide. The acquisition will bring Bitstamp’s vast customer base from the EU, UK, US, and Asia under the Robinhood umbrella, accelerating the international expansion of Robinhood Crypto. The deal is expected to close in the first half of 2025, pending regulatory approvals and other conditions.
Institutional Business Integration 💼
Through this acquisition, Robinhood will incorporate Bitstamp’s renowned institutional services, including dependable trade execution, strong order books, and advanced API connectivity. Bitstamp’s offerings such as Bitstamp-as-a-service, institutional lending, and staking will lay a strong foundation for Robinhood’s foray into the institutional market, enhancing its current crypto offerings.
Leadership Insights 👔
Johann Kerbrat, General Manager of Robinhood Crypto, emphasized the significance of the acquisition, stating, “The acquisition of Bitstamp is a major step in expanding our crypto business. Bitstamp, being a globally trusted exchange with a long-standing history, has demonstrated resilience through various market cycles, building a strong reputation among retail and institutional crypto investors.” JB Graftieaux, CEO of Bitstamp, added, “As the world’s oldest cryptocurrency exchange, Bitstamp is known for its trustworthiness and transparency. Integrating Bitstamp’s platform and expertise into Robinhood will enhance the trading experience for users while upholding high standards of compliance, security, and customer focus.”
Future Plans and Financial Details 💸
The deal, involving around $200 million in cash, includes standard purchase price adjustments. The completion of the transaction is subject to regulatory approvals and is expected to finalize in the first half of 2025. Barclays Capital Inc. acted as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC advised Bitstamp. This acquisition represents a significant move for Robinhood as it aims to expand its global crypto footprint and introduce institutional-grade services to its platform, fostering innovation and knowledge sharing between the two companies.
Image source: Shutterstock
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