Robinhood (HOOD), the trading platform, has announced its agreement to purchase the cryptocurrency exchange Bitstamp in a move aimed at expanding its global crypto footprint and attracting institutional clients with new product offerings. The all-cash transaction, valued at $200 million, is anticipated to be finalized in the first half of 2025, according to a press release issued on Tuesday. Barclays Capital and Galaxy Digital served as advisors for Robinhood and Bitstamp during the sale.
Johann Kerbrat, the general manager of Robinhood Crypto, stated, “The acquisition of Bitstamp is a significant milestone in the growth of our crypto business. Bitstamp’s well-established and globally trusted exchange has demonstrated resilience through various market cycles. This strategic combination positions us to extend our reach beyond the U.S. and welcome institutional customers to Robinhood.”
Founded in 2011, Bitstamp is a U.K.-based crypto exchange that has grown to become one of the largest in Europe. It offers spot trading for over 85 cryptocurrencies and provides other crypto services, including institutional lending and staking. Bitstamp is known for its stringent regulatory compliance, holding more than 50 licenses and registrations worldwide, and it undergoes regular audits by a global Big Four accounting firm.
Robinhood began offering crypto trading to clients in the European Union in December. JB Graftieaux, CEO of Bitstamp, commented, “Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will enhance the trading experience for users while maintaining a strong commitment to compliance, security, and customer-centricity.” Graftieaux and the current leadership team will remain in place following the acquisition.
This deal is expected to intensify competition in the crypto exchange market, potentially challenging other major players like Coinbase (COIN), which is also seeking to expand its presence outside North America.
