Robinhood acquires Bitstamp for $200 million in cash, accelerating global expansion of its crypto business.

The US online brokerage firm Robinhood announced that it has agreed to acquire the long-established European cryptocurrency exchange Bitstamp for approximately $200 million in cash to accelerate its global expansion in the crypto business.

Acquisition of Established Bitstamp Accelerates Global Expansion of Cryptocurrency Assets

Established in 2011, the well-established cryptocurrency exchange Bitstamp, headquartered in London, has over 50 valid licenses and registrations worldwide, with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. It will attract customers from the EU, UK, US, and Asia for Robinhood.

Bitstamp's core spot exchange offers over 85 tradable assets and products like staking and borrowing, trusted by institutional clients for its reliable trade execution, deep order book, and industry-leading API connectivity. With this acquisition, Robinhood will launch its first institutional business and enhance its cryptocurrency products.

Robinhood expects the final cash transaction price to be around $200 million, with the specific acquisition price subject to customary adjustments. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to be completed in the first half of 2025. Galaxy Digital Partners LLC serves as Bitstamp's exclusive financial advisor.

HOOD Continues to Improve Profits, Stock Price Up 80% Year-to-Date

The cryptocurrency division Robinhood Crypto of the US online brokerage Robinhood received a Wells Notice from the US Securities and Exchange Commission (SEC) in early May. Regulators believe that cryptocurrencies should be considered securities and comply with their registration rules. However, cryptocurrency companies accuse the SEC of overreach.

SEC enforcement continues, following Uniswap and Consensys, Robinhood also received a Wells Notice

However, this year, as the stock market and cryptocurrencies rise, Robinhood delivered impressive first-quarter financial results, with revenue based on trades increasing by 59%, mainly contributed by cryptocurrency revenue. Net profit significantly increased to $157 million, compared to $30 million in the previous quarter.

Robinhood achieves record revenue in the first quarter, with cryptocurrency revenue more than doubling

Robinhood's code HOOD has surged 80% this year. With the recovery of retail trading and increased adoption of cryptocurrencies, Robinhood is expected to gain more revenue.