Popular stock trading app Robinhood (NASDAQ:HOOD) is expanding its presence in the cryptocurrency market by acquiring global cryptocurrency exchange Bitstamp for approximately $200 million. The transaction is expected to be completed 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 a variety of popular cryptocurrencies, including Bitcoin, although it previously restricted some due to U.S. regulatory scrutiny.
The Bitstamp acquisition is consistent with Robinhood’s strategy to deepen its cryptocurrency offerings and expand internationally. Robinhood launched its core stock trading product in the UK last November and began offering cryptocurrency trading in the European Union shortly after.
Founded in Europe in 2011, Bitstamp is one of the oldest cryptocurrency exchanges in the world, facilitating trading for businesses and individuals. It was acquired by Belgian investment company NXMH in 2018, and Ripple also purchased a stake last year.
Robinhood went public in mid-2021, initially thriving during the pandemic before falling in value from an IPO high of $40 billion to less than $10 billion. But the company has bounced back from record profits, more than doubling its valuation to $19 billion last year. In the first quarter of 2024, Robinhood reported monthly active users of 13.7 million, up 16% year-over-year, and revenue of $618 million, up 40%. Notably, transaction-based revenue increased 59% to $329 million, driven by a 232% increase in cryptocurrency revenue to a total of $126 million.
With Bitstamp, Robinhood aims to strengthen its presence among retail and institutional cryptocurrency investors in Europe, Asia, and the United States. Bitstamp currently holds over 50 licenses and registrations to operate in the region.
“The acquisition of Bitstamp is an important milestone in the expansion of our cryptocurrency business,” said Johann Kerbrat, General Manager Cryptocurrency at Robinhood. “The Bitstamp team has built one of the strongest reputations among retail and institutional cryptocurrency investors. This strategic combination will allow us to expand our footprint beyond the U.S. and attract institutional clients to Robinhood.”
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