Robinhood Expands Crypto Presence with $200 Million Acquisition of Bitcoin Exchange Bitstamp

• Robinhood is expanding its presence in the cryptocurrency market by acquiring Bitstamp, a Bitcoin exchange.
• The $200 million acquisition will enable Robinhood to serve institutional clients in the United States.
• “Everything we’ve done over the past few years has been about offering more crypto products to our customers,” said Johann Kerbrat, Robinhood Crypto General Manager.

Robinhood secures its footprint in the crypto market with a $200 million acquisition of Bitstamp, ready to offer enhanced services to institutional clients in the US.

Robinhood Expands with the Acquisition of Bitstamp

Robinhood, the popular stock trading app, has announced its strategic acquisition of Bitstamp, a renowned Bitcoin exchange, for $200 million. This move is designed to bolster Robinhood’s service offerings to institutional customers in the US. Subject to regulatory approval, the acquisition is expected to finalize in the first half of 2025. This significant step underscores Robinhood’s commitment to expanding its footprint in the cryptocurrency market, aiming to meet the growing demand for crypto products.

Bitstamp’s Strategic Importance to Robinhood

A report from the Wall Street Journal dated June 6 highlights that the decision to acquire Bitstamp stems from increasing customer demand for a broader range of cryptocurrency products. The all-cash transaction, valued at $200 million, is anticipated to close in early 2025. During this acquisition process, Robinhood and Bitstamp received advisory support from Barclays Capital and Galaxy Digital. Reflecting on the acquisition, Johann Kerbrat, the General Manager of Robinhood Crypto, commented, “Everything we’ve done over the past few years has been about offering more crypto products to our customers.”

Expanding Robinhood’s Global Reach

Founded in 2011, Bitstamp has grown to become one of Europe’s largest cryptocurrency exchanges, known for its compliance and security. The acquisition will allow Robinhood to extend its cryptocurrency presence globally and attract institutional clients through new product offerings. “Acquiring Bitstamp is an important step in growing our cryptocurrency operations,” noted Johann Kerbrat. He expressed optimism that this acquisition would significantly enhance Robinhood’s crypto capabilities on a global scale.

Robinhood’s Crypto Offerings and Market Position

Bitstamp, established in 2011, offers a range of cryptocurrency services, including spot trading for over 85 cryptocurrencies, institutional lending, and staking. As one of the most regulated exchanges globally, Bitstamp operates under more than 50 licenses and registrations. The exchange is also regularly audited by a global Big Four accounting firm, ensuring high standards of transparency and security. Robinhood’s entry into the cryptocurrency market has already begun, with the company initiating crypto trading services in the European Union in December. JB Graftieaux, CEO of Bitstamp, stated, “Integrating Bitstamp’s platform and expertise within the Robinhood ecosystem will provide users with an enhanced trading experience focused on compliance, security, and customer-centric services.”

Conclusion

The acquisition of Bitstamp by Robinhood marks a pivotal moment in the expansion of Robinhood’s cryptocurrency services. By acquiring one of Europe’s largest and most reputable exchanges, Robinhood aims to meet increasing customer demands and strengthen its position in the competitive crypto market. As Robinhood prepares to finalize the acquisition in 2025, investors and market insiders alike will be keenly watching to see how this strategic move impacts the landscape of global cryptocurrency trading.