The popular trading platform Robinhood announced that it has concluded an agreement to acquire the cryptocurrency trading platform Bitstamp for $200 million.
This strategic move aims to expand Robinhood's reach in the global cryptocurrency market, with a particular focus on attracting institutional customers by offering innovative products and services.
Deal details and regulatory conditions:
The all-cash deal is valued at $200 million and is expected to close in the first half of 2025.
Completion of the deal depends on meeting a set of usual regulatory conditions and obtaining the necessary approvals from the relevant authorities.
In this context, “Barclays Capital Inc” acted as the exclusive financial advisor to “Robinhood”, while “Galaxy Digital Partners LLC” was the exclusive financial advisor to “Bitstamp”.
Johan Kerbrat, Managing Director of Robinhood, explained the importance of this acquisition, saying:
The acquisition of BITSTAMP represents a crucial step in expanding our cryptocurrency business.
BITSTAMP is a trusted global trading platform that has proven its resilience throughout various market cycles.
By offering an integrated and secure customer experience across various geographies, the BITSTAMP team has built a strong reputation among retail and institutional cryptocurrency investors.
With this move, Robinhood seeks to achieve its ambitious goal of expanding its presence outside the United States.
Robinhood also aims to attract new institutional clients to its platform, strengthening its position in the global cryptocurrency market.
Despite the intense regulatory scrutiny Robinhood faces, including a “Wales” notice issued by the US Securities and Exchange Commission (SEC) regarding potential violations of securities laws, the platform has seen significant growth in its revenue from the cryptocurrency sector.
Revenues rose to $618 million, registering a 40% increase year over year.