Robinhood Secures Worldwide Cryptocurrency Exchange Bitstamp in a $200 Million Deal

The stock-trading application Robinhood is making a significant move into the cryptocurrency sector by acquiring the cryptocurrency exchange Bitstamp.

On Thursday, Robinhood announced its intention to purchase Bitstamp for an estimated $200 million, with plans to finalize the deal in the first half of 2025.

Initially focused on stock trading, Robinhood has gradually ventured more into the realm of cryptocurrencies, offering its users the ability to trade a variety of popular digital currencies, including Bitcoin. The company briefly limited its cryptocurrency offerings last year, citing U.S. regulatory pressures.

Expansion into cryptocurrencies and beyond

This acquisition is part of Robinhood’s broader ambitions to delve into the cryptocurrency market and pursue global growth. Last November, the firm launched its flagship stock-trading service in the United Kingdom and shortly thereafter expanded into providing cryptocurrency trading within the European Union (EU).

Established in Europe in 2011, Bitstamp stands as one of the oldest cryptocurrency exchanges globally, servicing both individual and corporate clients in trading various cryptocurrencies. It came under the ownership of the Belgian investment firm NXMH in 2018, with Ripple securing a stake in it last year.

After going public in mid-2021, Robinhood experienced fluctuating fortunes similar to many companies that initially thrived during the pandemic. Its IPO saw it valued at $32 billion, peaking at over $40 billion before falling below $10 billion for a considerable period. Nonetheless, the past year saw its valuation climb to $19 billion, supported by record revenues. According to its Q1 2024 earnings report, monthly active users increased by 16% year-over-year to 13.7 million, and revenue grew by 40% to $618 million, with a significant 59% increase in transaction-based revenue, majorly fueled by a 232% boost in cryptocurrency earnings totaling $126 million.

By integrating Bitstamp, Robinhood aims to enhance its offerings for both retail and institutional cryptocurrency investors in Europe, Asia, and the United States, drawing on Bitstamp’s extensive licensing and operational reach in these territories.

“Securing Bitstamp marks a pivotal step in advancing our cryptocurrency operations,” stated Johann Kerbrat, Robinhood’s cryptocurrency general manager. “Bitstamp’s esteemed reputation among retail and institutional investors in the crypto space aligns with our strategic goals. This acquisition allows us to amplify our international presence and welcome a broader customer base.”