Bitcoin
Robinhood to acquire cryptocurrency exchange Bitstamp in $200 million deal
Robinhood is investing in digital currencies, advertising Thursday that the popular stock trading app will acquire crypto exchange Bitstamp for around $200 million.
The deal marks the trading platform’s biggest push into the digital asset industry, the company said in a statement on Thursday, and will make it a competitor to major crypto trading firms such as Binance and Coinbase. The deal is expected to close in the first half of 2025.
The transaction comes as some of the country’s biggest financial companies introduce products aimed at everyday investors eager to put money into digital currencies.
Click here to view related media.
Click to expand
“The acquisition of Bitstamp is an important step in growing our crypto business. Bitstamp’s long-standing, highly reliable global exchange has shown resilience through market cycles,” Robinhood Crypto General Manager Johann Kerbrat said in the statement. He added that the acquisition will allow Robinhood to increase its presence internationally and acquire institutional clients.
Robinhood is an online trading platform that promotes commission-free investing. It is the equivalent of an online broker, but it does not complete customer trades. Instead, it sends them to other trading companies, which match buyers with sellers of stocks and pay Robinhood a commission for the trades.
The company’s acquisition of Bitstamp would introduce Robinhood’s first institutional business.
“Bringing the Bitstamp platform and experience into the Robinhood ecosystem will provide users with an enhanced trading experience with an ongoing commitment to compliance, security and customer-centricity,” Bitstamp CEO JB Graftieaux said in a statement.
Bitcoin Exchange-Traded Funds Gain SEC Approval: What It Means
In fact, Robinhood’s recent profitability is tied to its fledgling crypto business. The company reported a profit of $157 million or 18 cents per share in the first quarter, beating analysts’ estimates. Its profits were driven in part by high crypto trading volumes.
After the Securities and Exchange Commission approved spot bitcoin exchange-traded funds, industry giants including BlackRock, Fidelity Investments and Franklin Templeton competed with other players to launch crypto ETFs. These investments allow buyers to gain exposure to bitcoin without directly owning it, among other benefits.
More
see more information