Robinhood Markets Inc. is set to acquire cryptocurrency exchange Bitstamp for approximately $200 million in cash. This strategic move aims to accelerate Robinhood’s global cryptocurrency expansion.
Key Takeaways
- Acquisition Details: Robinhood is purchasing Bitstamp for about $200 million in cash.
- Global Reach: Bitstamp has offices in Luxembourg, the UK, Slovenia, Singapore, and the US, with over 50 active licenses and registrations worldwide.
- Institutional Business: This acquisition marks Robinhood’s first foray into institutional business.
- SEC Investigation: The deal follows a recent SEC investigation into Robinhood’s crypto division.
- Market Reaction: Shares of Robinhood Markets rose more than 2% following the announcement.
Acquisition Details
Robinhood Markets Inc. announced its plan to acquire Bitstamp, a well-established cryptocurrency exchange, for approximately $200 million in cash. The acquisition is expected to close in the first half of next year.
Global Reach of Bitstamp
Founded in 2011, Bitstamp has a significant global presence with offices in Luxembourg, the United Kingdom, Slovenia, Singapore, and the United States. The exchange boasts more than 50 active licenses and registrations worldwide, serving customers across the European Union, United Kingdom, United States, and Asia.
Robinhood’s First Institutional Business
This acquisition marks Robinhood’s first venture into institutional business. Johann Kerbrat, General Manager of Robinhood Crypto, highlighted Bitstamp’s strong reputation among retail and institutional crypto investors. He emphasized that the strategic combination would enhance Robinhood’s ability to expand its footprint outside the U.S. and attract institutional customers.
SEC Investigation
The announcement comes a month after Robinhood Markets disclosed that it had received a notice from the Securities and Exchange Commission (SEC) regarding alleged securities violations in its crypto division. The company has been cooperating with the SEC’s investigation, which includes issues related to cryptocurrency listings, custody of cryptocurrencies, and platform operations.
Market Reaction
Following the announcement of the acquisition, shares of Robinhood Markets saw a rise of more than 2% before the market opened.
The acquisition of Bitstamp is a significant step for Robinhood as it seeks to strengthen its position in the global cryptocurrency market and expand its services to institutional clients.
