Markets
Bitstamp to be sold to Robinhood in $200 million deal
Trading platform Robinhood (HOOD) has agreed to acquire crypto exchange Bitstamp in a bid to expand its crypto presence globally and attract institutional clients with new product offerings, a the company announced Tuesday.
The $200 million, all-cash transaction is expected to close in the first half of 2025, according to the press release. Barclays Capital and Galaxy Digital advised Robinhood and Bitstamp on the sale, the companies said.
“The acquisition of Bitstamp is a major step in the growth of our crypto business,” said Johann Kerbrat, CEO of Robinhood Crypto. “Bitstamp’s long-standing and highly trusted global exchange has demonstrated resilience through market cycles… With this strategic combination, we are better positioned to expand our presence outside of the United States and welcome institutional clients at Robinhood.
Bitstamp is a UK-based crypto exchange that was founded in 2011 and quickly became one of the largest crypto exchanges in Europe. It currently offers spot trading of over 85 cryptocurrencies as well as other crypto products including institutional lending and staking. It is one of the most regulated in the market, holding more than 50 licenses and registrations worldwide, according to the release. It is also subject to regular audits by one of the four major global accounting firms.
Robinhood has started offering cryptocurrency trading to its customers in the European Union in December.
“Integrating Bitstamp’s platform and expertise into the Robinhood ecosystem will provide users with an enhanced trading experience with a continued commitment to compliance, security and customer focus,” he said. said JB Graftieaux, CEO of Bitstamp, who, along with the rest of the management team, will remain in place following the sale.
The deal could intensify competition in the crypto exchange market as Robinhood’s international expansion could take more market share from companies like Coinbase (COIN), which is also push to expand outside of North America.