Robinhood Markets, Inc. is gearing up to acquire Bitstamp Ltd., a move that is poised to elevate Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition, slated to be finalized in the first half of 2025, is aimed at integrating Bitstamp’s robust and reputable cryptocurrency exchange services into Robinhood’s platform, catering to both individual and institutional clients across the EU, UK, US, and Asia.
Venturing Beyond US Borders
This strategic acquisition signifies Robinhood’s bold expansion beyond the confines of the United States. Established in 2011, Bitstamp operates on a global scale with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations worldwide, Bitstamp is set to facilitate the rapid global growth of Robinhood Crypto.
Introduction of Institutional Services
In a groundbreaking move, Robinhood is stepping into the institutional market for the first time, leveraging Bitstamp’s renowned reputation for reliable trading execution, extensive order books, and top-notch 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 existing 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: “Acquiring Bitstamp is a pivotal move in advancing our cryptocurrency business. Bitstamp’s globally trusted and enduring exchange has demonstrated resilience throughout market fluctuations. By seamlessly blending customer experience with security across various regions, the Bitstamp team has cultivated one of the most reputable standings among retail and institutional cryptocurrency investors.”
JB Graftieaux, CEO of Bitstamp, shared his enthusiasm about the merger: “As the world’s longest-standing cryptocurrency exchange, Bitstamp is recognized as one of the most trustworthy and transparent cryptocurrency platforms worldwide. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will offer users an enhanced trading experience with a persistent focus on compliance, security, and customer-centric values.”
Collaboration and Innovation
The merger will unite Bitstamp’s team with Robinhood, fostering collaboration and innovation across continents. Both Robinhood and Bitstamp customers can anticipate continued high-quality service, security, and reliability. Transparency will remain a central theme throughout the integration process.
Financial and Advisory Details
Robinhood has estimated the final deal value at around $200 million in cash, subject to customary purchase price adjustments. The acquisition is pending regulatory approvals and other standard closing conditions. Barclays Capital Inc. acted as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC served as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp gear up for this transformative acquisition, the cryptocurrency market eagerly awaits the enhanced capabilities and extended reach that this merger is set to deliver.