Robinhood Markets, Inc. is poised to acquire Bitstamp Ltd., a move that is expected to elevate Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition, scheduled to be finalized in the first half of 2025, aims to introduce Bitstamp’s strong and reputable cryptocurrency exchange services to Robinhood’s platform, serving retail and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond Borders
This strategic acquisition signifies Robinhood’s significant expansion beyond the boundaries of the United States. Established in 2011, Bitstamp operates globally with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations worldwide, Bitstamp will facilitate the rapid global growth of Robinhood Crypto.
Introducing Institutional Offerings
In a groundbreaking move, Robinhood will step into the institutional market by leveraging Bitstamp’s established reputation for reliable trading execution, extensive order books, and top-tier API connectivity. Bitstamp’s array of institutional services, including its white label solution Bitstamp-as-a-service, institutional lending, and staking, will complement Robinhood’s current offerings. This acquisition will integrate Bitstamp’s primary spot exchange, which boasts over 85 tradable assets, further enriching Robinhood’s cryptocurrency portfolio.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of this acquisition: “The acquisition of Bitstamp is a pivotal move in expanding our cryptocurrency business. Bitstamp’s globally trusted exchange has demonstrated resilience through market fluctuations. By seamlessly combining customer experience with security across various regions, the Bitstamp team has cultivated one of the most respected reputations among both retail and institutional cryptocurrency investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm about the merger: “As the oldest running cryptocurrency exchange globally, Bitstamp is renowned as one of the most reliable and transparent cryptocurrency platforms. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience while upholding a commitment to compliance, security, and customer-centric values.”
Collaboration and Innovation
The merger will bring together Bitstamp’s team with Robinhood, fostering collaboration and innovation across continents. Customers of both Robinhood and Bitstamp can anticipate receiving the same level of service, security, and dependability. Transparency will remain a central focus throughout the integration process.
Financial and Advisory Details
The final deal consideration for Robinhood is valued at approximately $200 million in cash, subject to standard purchase price adjustments. The acquisition is contingent on regulatory approvals and customary closing conditions. Barclays Capital Inc. served as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC acted as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp prepare for this transformative acquisition, the cryptocurrency market eagerly awaits the enhanced capabilities and extended reach that this merger is poised to bring.