Robinhood introduced on Thursday that it has obtained Bitstamp, one of the crucial international’s oldest cryptocurrency exchanges, in an all-cash deal anticipated to be value round $200 million. The purchase, which is predicted to near within the first part of 2025, will advance one in every of Robinhood’s strategic objectives by means of increasing the corporate’s presence in in a foreign country markets.
Bitstamp has been a fixture of the crypto business since 2011 when it introduced in Slovenia, after which relocated to Luxembourg and the U.Okay. Its marketshare has declined in recent times, on the other hand, and regardless of having 4 to 5 million shoppers, Bitstamp now ranks sixteenth in buying and selling quantity amongst cryptocurrency exchanges. Its greatest marketplace stays Europe, but it surely additionally has shoppers in the United Kingdom, Asia and the U.S.
In an interview with Fortune, Robinhood Crypto’s Normal Supervisor, Johann Kerbrat, identified that Bitstamp has 50 lively licenses around the globe, and that the alternate additionally does a strong industry with establishments. He added that the deal will likely be a vital first step in opposition to some other of Robinhood’s strategic priorities, which is growing an institutional trade to counterpoint its fast-growing suite of client merchandise.
The purchase comes as a wonder since there were no reviews Bitstamp used to be up on the market, and as Robinhood is bouncing again from a brutal 2023 that noticed the cost of its stocks, that are lately buying and selling round $22, fall as little as $7. The downturn, which resulted in rumors that Robinhood had transform an acquisition goal, used to be a part of a broader reckoning that solid doubt at the total well being of the fin-tech sector.
In 2024, the tale has been a lot other for Robinhood as the corporate posted report profits for Q1, and remaining week introduced a $1 billion inventory buyback. In the meantime, it has begun to transport clear of the feast-or-famine trade of inventory buying and selling, including products and services like bank cards and retirement accounts which are much less susceptible to marketplace fluctuations.
Robinhood’s acquisition of Bitstamp coincides with an enormous upswing within the crypto markets that has noticed the cost of Bitcoin climb over 60% for the reason that get started of the yr, and the corporate submit a three-fold build up in crypto income all the way through the primary quarter.
The deal additionally has the prospective to become Robinhood’s present crypto operations, which basically revolve round sourcing Bitcoin and different currencies from marketplace makers. In obtaining Bitstamp, Robinhood will be capable to supply crypto from its personal alternate as a substitute, and doubtlessly invite its shoppers to industry there. Bitstamp additionally provides as many as 85 virtual tokens in a few of its markets, in comparison to the dozen or so presented by means of Robinhood, in addition to lending and staking products and services.
Any try by means of Robinhood to extend its crypto choices within the U.S. may face scrutiny from the Securities and Trade Fee, which signaled in Would possibly that it plans to sue the corporate over its token choices. The transfer by means of the SEC got here as a part of a broader attack at the crypto business, however one that can be on shaky criminal floor as each courts and elected officers have accused the company of overreach.
As for whether or not Bitstamp will stay as a stand-alone emblem, or be renamed as a Robinhood product, Kerbrat stated it’s untimely to mention for the reason that deal will best be last subsequent yr.
The purchase comes just about a yr after reviews that Bitstamp used to be in talks to boost price range to increase its operations within the U.Okay. and Asia. On the time, the corporate’s CEO Jean-Baptiste Graftieaux stated the corporate used to be now not taking a look to promote itself.
Within the Robinhood press unencumber pronouncing the purchase, Gratfieaux mentioned: “Bringing Bitstamp’s platform and experience into Robinhood’s ecosystem will give customers an enhanced buying and selling enjoy with a unbroken dedication to compliance, safety, and customer-centricity.”
Barclays Capital served because the monetary marketing consultant to Robinhood for the deal, whilst Galaxy Virtual Companions served as marketing consultant to Bitstamp.
