Robinhood Markets, Inc. is on the verge of acquiring Bitstamp Ltd., a move that is poised to boost Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition is anticipated to be finalized in the first half of 2025, with the goal of integrating Bitstamp’s strong and reputable crypto exchange services into Robinhood’s platform, serving both individual and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond US Borders
This strategic purchase signifies Robinhood’s major expansion beyond the borders of the United States. Bitstamp, established in 2011, operates on a global scale with headquarters 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.
Introduction of Institutional Services
In a first for Robinhood, the company will enter the institutional market by leveraging Bitstamp’s solid reputation for reliable trade execution, deep 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: “The acquisition of Bitstamp is a pivotal move in expanding our cryptocurrency business. Bitstamp’s globally trusted and longstanding exchange has demonstrated resilience throughout market fluctuations. By seamlessly blending customer experience with security across different regions, the Bitstamp team has earned a solid reputation among both individual and institutional crypto investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm about the merger: “As the world’s oldest cryptocurrency exchange, Bitstamp is renowned as one of the most trustworthy and transparent crypto platforms globally. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience while maintaining a strong commitment to compliance, security, and customer satisfaction.”
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 expect to receive 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 around $200 million in cash, subject to standard purchase price adjustments. The acquisition is contingent on regulatory approvals and other 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 gear up for this transformative acquisition, the cryptocurrency market eagerly awaits the enhanced capabilities and expanded reach that this merger is poised to bring.