Robinhood Markets, Inc. is gearing up to acquire Bitstamp Ltd., in a move that is poised to elevate Robinhood’s cryptocurrency services and broaden its global presence. The acquisition, set to be finalized in the first half of 2025, aims to integrate Bitstamp’s strong and reputable cryptocurrency exchange services into Robinhood’s platform, catering to retail and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond US Borders
This strategic acquisition signifies Robinhood’s significant expansion 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 licenses and registrations worldwide, Bitstamp will facilitate the rapid global growth of Robinhood Crypto.
Introducing Institutional Services
In a groundbreaking move, Robinhood is entering the institutional market for the first time, leveraging Bitstamp’s established reputation for reliable trade execution, deep order books, and top-tier API connectivity. Bitstamp’s 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 core spot exchange, featuring over 85 tradable assets, further diversifying Robinhood’s cryptocurrency portfolio.
Leadership Perspectives
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of this acquisition: “The acquisition of Bitstamp is a pivotal step in expanding our cryptocurrency business. Bitstamp’s globally trusted exchange has demonstrated resilience throughout market cycles. By combining customer experience with safety on a global scale, the Bitstamp team has earned a strong reputation among retail and institutional cryptocurrency investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm for the merger: “As the oldest cryptocurrency exchange in the world, Bitstamp is recognized as one of the most reliable and transparent platforms globally. 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 high 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 the acquisition is valued at approximately $200 million in cash by Robinhood, 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 acted as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp prepare for this transformative acquisition, the cryptocurrency market eagerly awaits the enhanced capabilities and extended reach that this merger is set to bring.