Robinhood buys Bitcoin and cryptocurrency exchange Bitstamp for $200 million

Robinhood has agreed to acquire leading Bitcoin and cryptocurrency exchange Bitstamp for $200 million in cash, significantly expanding its Bitcoin and cryptocurrency business. The transaction is expected to be completed in the first half of 2025.

BREAKING NEWS: BUY ROBINHOOD #Bitcoin and BITSTAMP, a $200 million cryptocurrency exchange. pic.twitter.com/Q9LfBDw3Di

— Bitcoin Magazine (@BitcoinMagazine) June 6, 2024

Founded in 2011, Bitstamp is one of the oldest and most established cryptocurrency exchanges in the world. It operates throughout Europe, Asia and the United States and has over 50 licenses worldwide. With this acquisition, Bitstamp’s institutional and retail customers will receive the protection of Robinhood.

Robinhood aims to leverage Bitstamp’s reputation for resilience and trust to power its own Bitcoin and cryptocurrency products. Bitstamp has been through over 10 years of market cycles and has maintained high security standards.

The purchase comes as Robinhood faces scrutiny from the SEC over its cryptocurrency sector. However, Bitcoin and cryptocurrencies remain key drivers of growth, with trading revenue from cryptocurrency trading increasing by 40% last year. Acquiring an established platform like Bitstamp could significantly expand Robinhood’s global reach.

Johann Kerbrat, Robinhood’s general manager, said the deal is “an important step in growing our cryptocurrency business” and will help Robinhood “expand our presence outside the U.S. and welcome institutional clients.” “We believe that cryptocurrencies will fundamentally reshape the financial system,” said Robinhood CEO Vlad Tenev.

Robinhood already offers Bitcoin and cryptocurrency trading services in the EU. However, purchasing Bitstamp comes with an established customer base and regulatory licenses across multiple jurisdictions. As demand for Bitcoin grows, this acquisition will give Robinhood access to increased trading volume.