Robinhood Markets, Inc. is gearing up to acquire Bitstamp Ltd., a strategic move that will elevate Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition, anticipated to be finalized in the first half of 2025, is aimed at integrating Bitstamp’s reputable crypto exchange services into Robinhood’s platform, serving both retail and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond Borders
This acquisition signifies Robinhood’s ambitious expansion beyond US borders. Bitstamp, established in 2011, operates internationally with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations worldwide, Bitstamp is poised to facilitate the rapid global growth of Robinhood Crypto.
Institutional Services Unveiled
In a groundbreaking move, Robinhood will delve into the institutional market, capitalizing on Bitstamp’s solid reputation for dependable trade execution, extensive order books, and advanced 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 seamlessly integrate Bitstamp’s primary spot exchange, boasting over 85 tradable assets, enriching Robinhood’s cryptocurrency portfolio.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, underscored the significance of this acquisition: “The acquisition of Bitstamp marks a pivotal moment in the growth of our crypto business. Bitstamp’s globally trusted and longstanding exchange has demonstrated resilience throughout market fluctuations. By combining customer experience with security across different regions, the Bitstamp team has earned one of the strongest reputations among retail and institutional crypto investors.”
JB Graftieaux, CEO of Bitstamp, expressed enthusiasm about the merger: “As the world’s oldest cryptocurrency exchange, Bitstamp is renowned as one of the most trustworthy and transparent crypto platforms worldwide. 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-centricity.”
Collaboration and Innovation at the Forefront
The merger will see Bitstamp’s team collaborating with Robinhood, fostering innovation and teamwork across continents. Both Robinhood and Bitstamp customers can expect to receive the same level of service, security, and reliability. Transparency will continue to be a core 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. Regulatory approvals and other customary closing conditions are pending for the acquisition. 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 crypto market eagerly anticipates the enhanced capabilities and extended reach that this merger is set to deliver.
