Robinhood Expands Its Crypto Empire with Bitstamp Acquisition
Robinhood Markets (HOOD.O), announced on Thursday its definitive agreement to acquire the cryptocurrency exchange Bitcoin for approximately $200 million in cash. This transaction marks Robinhood's largest acquisition to date and is a significant step in its ambitious expansion into the digital assets arena.

Robinhood Markets (HOOD.O), announced on Thursday its definitive agreement to acquire the cryptocurrency exchange Bitcoin for approximately $200 million in cash. This transaction marks Robinhood's largest acquisition to date and is a significant step in its ambitious expansion into the digital assets arena.
Robinhood, which saw its shares increase by 3.4% in pre-market trading, is evolving from a trading platform to a comprehensive financial services entity. The inclusion of Bitstamp into its portfolio is set to place Robinhood in direct rivalry with established players such as Binance and Coinbase (COIN.O).
Founded in 2011, Bitstamp boasts a substantial global footprint with 50 active licenses and registrations. Its core spot exchange is notably popular in Europe and Asia, featuring over 85 tradable assets. This acquisition is poised to significantly bolster the capabilities of Robinhood Crypto.
"We are in our early days in the EU and we are excited to keep expanding there and beyond. The acquisition of Bitstamp will accelerate our global expansion," stated Johann Kerbrat, vice president and general manager of Robinhood Crypto, in a discussion with Reuters.
The deal, expected to finalize in the first half of 2025, arrives at a pivotal moment as Robinhood's cryptocurrency division experiences rapid growth but also navigates regulatory challenges in the United States. Kerbrat emphasized the importance of ongoing communications with regulators to navigate forward.
Amidst this strategic expansion, Robinhood reported a robust first-quarter earnings beat in May, largely driven by its crypto operations. However, it also faced regulatory scrutiny when it disclosed receiving a Wells notice from the U.S. Securities and Exchange Commission, indicating potential enforcement action related to tokens traded on its platform. The regulatory body has contended that such tokens should be regarded as securities and therefore require registration under its rules, a stance that has sparked debate among crypto firms about regulatory overreach.
Despite these challenges, Robinhood's stock has experienced a significant uptick, increasing by 69% this year following its strategy shift towards "profitable growth." With a resurgence in retail trading and growing adoption of cryptocurrencies, market analysts anticipate further increases in the company’s stock value.
Barclays Capital and Galaxy Digital served as exclusive financial advisers to Robinhood and Bitstamp, respectively, guiding both firms through the complexities of the deal.
This strategic acquisition underscores Robinhood's commitment to diversifying its service offerings and solidifying its position in the competitive cryptocurrency market, reflecting its broader aspirations in the fintech industry.