Bitstamp Sells for $200M to Robinhood Global Crypto Exchange

Stock-trading platform Robinhood is diving deeper into the cryptocurrency realm with the acquisition of crypto exchange Bitstamp. With Bitstamp under its wing, Robinhood says that it will be better positioned to target retail and institutional crypto investors across Europe, Asia, and the U.S., with Bitstamp currently holding more than 50 licenses and registrations to operate in these markets. “The acquisition of Bitstamp is a major step in growing our crypto business,” Robinhood’s crypto general manager Johann Kerbrat said in a statement. “The Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors. Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”

In a groundbreaking move, stock-trading platform Robinhood is making a bold expansion into the world of cryptocurrency by acquiring Bitstamp, a leading crypto exchange. The deal is expected to be finalized in the first half of 2025, with a projected value of around $200 million.

While Robinhood has made a name for itself as a popular platform for trading stocks of large, publicly-traded companies, it has recently been delving into the world of crypto. Despite facing regulatory scrutiny in the U.S., Robinhood has shown its support for popular cryptocurrencies such as Bitcoin. However, in 2024 the company restricted some of its crypto activities.

Today’s announcement not only showcases Robinhood’s continued commitment to the world of crypto, but also its efforts towards global expansion. This effort began with the launch of its core stock-trading product in the UK in November, followed by the introduction of its crypto trading feature in the European Union.

Founded in 2011 in Europe, Bitstamp is one of the oldest and most reputable cryptocurrency exchanges in the world. It offers trading services for a wide range of cryptocurrencies for both companies and individuals. In 2018, it was acquired by Belgian investment firm NXMH, and just last year, Ripple became a significant stakeholder.

Robinhood went public in mid-2021 and, like many companies during the pandemic, saw fluctuations in its success as the world returned to normalcy. Its initial IPO valuation of $32 billion soared to over $40 billion before declining and remaining steady at under $10 billion for the past two years. However, in the past year, Robinhood’s valuation has more than doubled to $19 billion, thanks to record earnings.

During its Q1 2024 report in May, Robinhood announced a 16% year-on-year increase in monthly active users, reaching 13.7 million. Its revenues also saw a significant jump, increasing by 40% to $618 million. Notably, the company pointed out that its transaction-based revenue, which grew by 59% to $329 million, was largely driven by income from cryptocurrency, which amounted to $126 million – a staggering 232% increase.

With Bitstamp now in its portfolio, Robinhood is well-positioned to cater to both retail and institutional crypto investors in the U.S., Europe, and Asia. Bitstamp currently holds over 50 licenses and registrations, allowing it to operate in these markets.

“The acquisition of Bitstamp marks a significant milestone in the growth of our crypto business,” stated Robinhood’s crypto general manager, Johann Kerbrat. “The Bitstamp team has built a strong reputation among both retail and institutional crypto investors. With this strategic combination, we have the opportunity to expand our reach beyond the United States and welcome institutional clientele to Robinhood.”