Markets
Robinhood acquires global crypto exchange Bitstamp for $200 million
Stock Trading App Robin Hood Dive deeper into the cryptocurrency space with acquiring a crypto exchange. Bit stamp.
Robin Hood On Thursday, he said he expected the final transaction value is expected to be approximately $200 million and the transaction is expected to close in the first half of 2025.
Robinhood is known for its stock trading services, allowing everyday consumers to invest in some of the world’s largest publicly traded companies, but it has been go deeper into crypto territory over the years. The company has added support for many of the most popular cryptocurrencies, including Bitcoin, although it restricts some of the cryptocurrencies it supports last year due to regulatory oversight in the United States
More crypto and global expansion
Today’s deal is a testament to California-based Robinhood’s continued push not only in crypto, but also in its international expansion efforts. The company launched its main stock trading product in in the United Kingdom last November And started offering crypto trading in the European Union (EU) shortly thereafter.
Founded in Europe in 2011, Bitstamp is one of the oldest cryptocurrency exchanges in the world, allowing businesses and individuals to trade all kinds of cryptocurrencies. It was acquired by a Belgian investment company called NXMH in 2018 and last year, Ripple bought a stakeAlso.
Robin Hood became public in mid-2021, and like many companies that performed well during the pandemic, the company saw its initial good fortune crumble as the world (and investor confidence) returned to normal. The IPO valuation of the company 32 billion dollars surged to over $40 billion at one point, before steadily dropping well below the $10 billion mark for much of the past two years.
However, the trading app has seen its valuation more than double over the past year to $19 billion, supported by record gains. In his First quarter 2024 report in May, Robinhood said its monthly active users increased 16% year-over-year to 13.7 million, while its revenue rose 40% to $618 million. Notably, the company said its transaction-based revenue increased 59% to $329 million, driven primarily by a 232% increase in cryptocurrency revenue to $126 million. .
With Bitstamp under its wing, Robinhood says it will be better positioned to target retail and institutional crypto investors in Europe, Asia and the United States. Bitstamp currently holds over 50 licenses and registrations to operate in these markets.
“The acquisition of Bitstamp is a major step in the growth of our crypto business,” Johann Kerbrat, Robinhood’s chief crypto officer, said in a statement. “The Bitstamp team has built one of the strongest reputations among retail and institutional investors in crypto. With this strategic combination, we are better positioned to expand our presence outside of the United States and welcome institutional clients to Robinhood.