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 anticipated acquisition is scheduled to be finalized in the first half of 2025, with the aim of integrating Bitstamp’s reputable crypto exchange services into Robinhood’s platform, serving both individual and institutional clients across the EU, UK, US, and Asia.
Venturing Beyond Borders
This 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 licenses and registrations worldwide, Bitstamp is poised to facilitate the rapid growth of Robinhood Crypto on a global scale.
Introducing Institutional Offerings
In a groundbreaking move, Robinhood is set to enter the institutional market by leveraging Bitstamp’s track record for reliable trade execution, extensive order books, and advanced API connectivity. Bitstamp’s suite 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 comprehensive spot exchange, featuring a diverse range of over 85 tradable assets, enhancing Robinhood’s cryptocurrency portfolio.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of this acquisition: “Acquiring Bitstamp represents a crucial milestone in the growth of our crypto business. Bitstamp’s globally trusted exchange has demonstrated resilience throughout market fluctuations. By seamlessly combining customer experience with security across various regions, the Bitstamp team has cultivated a strong reputation among retail and institutional crypto investors.”
JB Graftieaux, CEO of Bitstamp, expressed enthusiasm about the merger: “As the world’s longest-standing cryptocurrency exchange, Bitstamp is renowned as one of the most reliable and transparent crypto platforms globally. 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 Ingenuity
The merger will see Bitstamp’s team collaborating with Robinhood, fostering innovation and cooperation across continents. Both Robinhood and Bitstamp customers can expect to receive the same level of service, security, and dependability. Transparency will remain a key focus throughout the integration process.
Financial and Advisory Details
The final deal consideration for Robinhood’s acquisition of Bitstamp is valued at approximately $200 million in cash, subject to standard purchase price adjustments. The completion of the acquisition is contingent upon regulatory approvals and customary closing conditions. Barclays Capital Inc. served as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC advised Bitstamp.
As Robinhood and Bitstamp prepare for this transformative merger, the crypto market eagerly anticipates the enhanced capabilities and expanded reach that this union promises to bring.