Robinhood Set to Acquire Bitstamp Cryptocurrency Exchange

Robinhood Markets, Inc. has entered into a definitive agreement to take over the international cryptocurrency platform Bitstamp as part of its strategy to extend its influence beyond the United States. Anticipated to be finalized in 2025, this move represents Robinhood’s inaugural acquisition in the institutional sphere.

Ambitious Global Growth for Robinhood

The brokerage service Robinhood has publicly declared its commitment to buy Bitstamp, with a view to bolster its international profile. Bitstamp’s varied clientele base, comprising both retail and institutional users, will be assimilated into Robinhood’s ecosystem through this acquisition.

An estimated price tag of $200 million in cash has been associated with the deal, which is poised for completion in the latter half of 2025, subject to standard adjustments in valuation and the receipt of regulatory consents.

Bitstamp, founded in 2011, enjoys an extensive global reach with locations in Luxembourg, the UK, Slovenia, Singapore, and USA. The exchange is recognized for holding more than 50 live licenses and registrations globally and supports trading in excess of 85 different assets.

The integration with Bitstamp stands to augment the trading platform with institutional-grade offerings such as asset lending and Bitstamp-as-a-service, positioning Robinhood to further penetrate this sector with proven infrastructure and existing relationships, as highlighted in the press briefing.

Enhancing Robinhood’s Cryptocurrency Services

Through its acquisition of Bitstamp, the trading platform aspires to quicken its global escalation and enrich its cryptocurrency product line. Johann Kerbrat, the company’s General Manager for Crypto, regards this development as pivotal:

Acquiring Bitstamp signifies a considerable maneuver in the advancement of our crypto services. Bitstamp has established its credibility and longevity in the global exchange landscape, enduring across various market conditions. The integration of Bitstamp’s respected market standing and its fusion of user-friendliness with strong security measures for customers worldwide will fortify Robinhood’s position, not just in US markets but also for institutional clientele worldwide.

Similarly, JB Graftieaux, the CEO of Bitstamp, expressed optimism for the union of the two companies, stating:

As an establishment known for pioneering the cryptocurrency exchange sector, Bitstamp enjoys a reputation for transparency and reliability among the crypto community. By synergizing Bitstamp’s acclaimed platform and know-how with the innovation at Robinhood, we foresee a more robust and user-focused trading experience, underpinned by an unwavering dedication to upholding compliance, security, and prioritizing customer needs.

Snapshot of the total cryptocurrency market capitalization shows $2.57 trillion in a three-day chart. Source: TOTAL via TradingView

Image courtesy of newsroom.aboutrobinhood.com, Chart from TradingView.com