Robinhood (NASDAQ:HOOD), the popular stock-trading app, is expanding its presence in the cryptocurrency market with the acquisition of global crypto exchange Bitstamp for approximately $200 million. The transaction is expected to finalize in the first half of 2025.
Robinhood, traditionally known for enabling everyday consumers to trade stocks, has been gradually increasing its involvement in the cryptocurrency sector. The company supports various popular cryptocurrencies, including Bitcoin, though it has previously restricted some due to U.S. regulatory scrutiny.
The acquisition of Bitstamp aligns with Robinhood’s strategy to deepen its crypto offerings and expand internationally. Robinhood launched its core stock-trading product in the U.K. last November and began offering crypto trading in the European Union shortly after.
Founded in Europe in 2011, Bitstamp is one of the oldest cryptocurrency exchanges globally, facilitating trading for companies and individuals. It was acquired by Belgian investment company NXMH in 2018, with Ripple also buying a stake last year.
Robinhood went public in mid-2021, initially thriving during the pandemic before seeing its valuation drop from an IPO peak of over $40 billion to below $10 billion. However, the company has experienced a resurgence, with its valuation more than doubling in the past year to $19 billion, driven by record earnings. In Q1 2024, Robinhood reported a 16% increase in monthly active users year-over-year to 13.7 million and a 40% rise in revenues to $618 million. Notably, transaction-based revenue surged by 59% to $329 million, largely due to a 232% increase in cryptocurrency income, totaling $126 million.
With Bitstamp, Robinhood aims to enhance its position among retail and institutional crypto investors in Europe, Asia, and the U.S. Bitstamp currently holds over 50 licenses and registrations to operate in these regions.
“The acquisition of Bitstamp is a significant milestone in expanding our crypto business,” said Johann Kerbrat, Robinhood’s crypto general manager. “The Bitstamp team has built one of the strongest reputations among both retail and institutional crypto investors. This strategic combination positions us to extend our reach beyond the U.S. and attract institutional customers to Robinhood.”
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