Thomas Daniels
Robinhood, a prominent retail trading platform, has secured an agreement to acquire Bitstamp, a U.K.-based cryptocurrency exchange, in a strategic move to broaden its crypto market presence and attract institutional clientele.
On Thursday, Robinhood announced its acquisition of Bitstamp, a deal valued at $200 million and set to close in the first half of 2025. This all-cash transaction underscores Robinhood’s commitment to expanding its global footprint in the cryptocurrency sector. Barclays Capital and Galaxy Digital advised on the deal, highlighting the professional expertise involved in this significant acquisition.
Johann Kerbrat, General Manager of Robinhood Crypto, stated, “The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood.”
Robinhood assured that there would be no layoffs or staff changes, emphasizing that both companies will merge and collaborate to maintain consistent service, security, and reliability for their customers. Transparency will be a key focus throughout the integration process, according to the press release.
Strategic Implications
This acquisition is pivotal for Robinhood as it aims to attract retail investors in the U.S. and intensify competition with major players like Coinbase (COIN) in the North American crypto market. By integrating Bitstamp’s extensive infrastructure, including its white-label solution Bitstamp-as-a-Service, institutional lending, and staking products, Robinhood is well-positioned to enhance its cryptocurrency offerings and establish its first institutional crypto business.
Bitstamp’s core spot exchange, which offers over 85 tradable assets, along with its staking and lending products, will significantly bolster Robinhood’s crypto portfolio. This merger not only signals Robinhood’s serious commitment to the crypto market but also represents a strategic effort to diversify its product offerings and attract a broader range of investors.
