Neo-broker Robinhood wants to buy crypto exchange Bitstamp
Robinhood, the popular neo-broker from the USA, announced today that it intends to acquire Bitstamp, a crypto exchange founded in 2011. Through this acquisition, Robinhood aims to gain a foothold in the European and Asian markets.
This strategic combination better positions Robinhood to expand outside of the U.S. and brings a trusted and reputable institutional business to Robinhood.
From Robinhood's press release
The acquisition is expected to close in the first half of 2025, subject to regulatory approval, and will cost Robinhood approximately $200 million in cash.
Robinhood expands its crypto business
Robinhood is a popular broker among small investors in the US, which was also at the center of the hype surrounding GameStop shares at the beginning of 2021. The approximately 10 million active customers have also been able to buy cryptocurrencies from the neo-broker for some time. With the acquisition of the global crypto exchange Bitstamp, Robinhood is planning to expand its Robinhood Crypto division.
The acquisition of a global exchange will significantly accelerate Robinhood Crypto's worldwide expansion. Bitstamp has more than 50 active licenses and registrations worldwide and will bring customers in the EU, UK, US and Asia to Robinhood.
From the press release
The USD 200 million acquisition shows that Robinhood continues to believe in the future of Bitcoin and Co. and wants to position itself more strongly in this segment. With the acquisition, the neo-broker is also targeting institutional investors for the first time.
This acquisition marks the launch of Robinhood's first institutional business.
From the press release
Bitstamp was founded in Slovenia in 2011, making it the longest active crypto exchange for Bitcoin and Co. In terms of traded volume, Bitstamp is currently ranked 16th among all crypto exchanges.
As part of the acquisition, Bitstamp and Robinhood plan to join forces to take Robinhood's crypto services to a new level.
The integration of Bitstamp's platform and expertise into Robinhood's ecosystem will provide users with an enhanced trading experience, while maintaining our commitment to compliance, security and customer focus.
JB Graftieaux, CEO of Bitstamp in the press release
In contrast to its German counterpart Trade Republic, Robinhood now allows users to transfer crypto assets to their own wallet.
It will be interesting to see whether Robinhood succeeds in improving its crypto services with the acquisition of Bitstamp, gaining additional customers and generally making Bitcoin and Co. easily accessible to more people.