Robinhood Markets, Inc. is on the verge of acquiring Bitstamp Ltd., a move that is poised to elevate Robinhood’s cryptocurrency offerings and broaden its global presence. The acquisition is scheduled to be finalized in the first half of 2025, with the goal of integrating Bitstamp’s reliable and esteemed cryptocurrency exchange services into Robinhood’s platform, catering to both individual and institutional clients across the EU, UK, US, and Asia.
Venturing Beyond US Borders
This strategic acquisition signifies Robinhood’s ambitious endeavor to establish a foothold beyond the borders of the United States. Bitstamp, established in 2011, operates on a global scale with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 active licenses and registrations worldwide, Bitstamp is set to facilitate the rapid global expansion of Robinhood Crypto.
Introducing Institutional Services
For the first time, Robinhood is delving into the institutional market, leveraging Bitstamp’s solid reputation for dependable trade execution, extensive order books, and cutting-edge 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 seamlessly integrate Bitstamp’s primary spot exchange, boasting over 85 tradable assets, thereby enriching Robinhood’s cryptocurrency portfolio.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, stressed the significance of this acquisition: “The acquisition of Bitstamp represents a significant milestone in the expansion of our cryptocurrency business. Bitstamp’s globally trusted and long-standing exchange has demonstrated resilience throughout market fluctuations. By combining customer experience with security across different regions, the Bitstamp team has earned a strong reputation among retail and institutional cryptocurrency investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm about the merger: “As the world’s longest-running cryptocurrency exchange, Bitstamp is renowned as one of the most reliable and transparent cryptocurrency platforms worldwide. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience while maintaining a commitment to compliance, security, and customer-centricity.”
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 reliability. 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 customary purchase price adjustments. The acquisition is pending regulatory approvals and other standard 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 anticipates the enhanced capabilities and extended reach that this merger is set to deliver.