Robinhood Markets has announced an agreement to acquire cryptocurrency exchange Bitstamp. The strategic acquisition aims to complement the Robinhood app with Bitstamp's extensive global exchange capabilities and support expansion into Europe.
Founded in 2011, Bitstamp was one of the first cryptocurrency exchanges. The platform was originally created as a Europe-focused alternative to the then-dominant exchange, Mt. Gox. Over the years, the company expanded from Slovenia to other countries, but never achieved a breakthrough similar to today's leading exchanges. According to a blog post, Robinhood's acquisition of Bitstamp will take place in 2025 at a valuation of $200 million, marking a new chapter for Bitstamp.
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From the US to the world
With the acquisition, Robinhood aims to significantly accelerate its global expansion. Bitstamp has more than 50 active licenses and registrations worldwide, with offices in Luxembourg, the United Kingdom, Slovenia, Singapore and the United States. This move will enable Robinhood to enter new markets and customer groups, and extend its reach beyond the US. Specifically in the area of digital assets, the U.S. financial services company can seamlessly expand its offerings to a global clientele, including both retail and institutional clients.
One of the key aspects of this acquisition is Robinhood's entry into the institutional space. To date, the company has primarily served US retail clients. Bitstamp has built a reputation for reliable trade execution, deep order books and industry-leading API connectivity. This makes the platform a trusted partner for institutional clients. Services such as Bitstamp-as-a-Service, institutional lending and staking will become part of Robinhood's portfolio.
Significant expansion
The acquisition of Bitstamp is Robinhood's largest acquisition since its founding in 2013. However, the deal still has to be approved by the relevant regulatory authorities. After all, Robinhood is a publicly traded company. The company expects the acquisition to close next year. This brings Robinhood one step closer to becoming a "super app."
"The acquisition of Bitstamp is an important step in growing our crypto business. Bitstamp's highly trusted and long-standing global exchange has proven resilient through market cycles. [Through this strategic combination, we are better positioned to expand our presence outside of the U.S. and welcome institutional clients to Robinhood." - Johann Kerbrat, Managing Director of Robinhood Crypto
