Robinhood Markets, Inc. is preparing to complete the acquisition of Bitstamp Ltd., a move that will not only strengthen Robinhood’s cryptocurrency offerings but also broaden its global presence. The acquisition is scheduled to be finalized in the first half of 2025 and is aimed at incorporating Bitstamp’s reliable and respected cryptocurrency exchange services into Robinhood’s platform, serving retail and institutional clients in the EU, UK, US, and Asia.
Venturing Beyond Borders
This strategic acquisition signifies Robinhood’s bold expansion beyond the borders of the United States. Bitstamp, established in 2011, operates on a global scale with offices in Luxembourg, the UK, Slovenia, Singapore, and the US. With more than 50 licenses and registrations worldwide, Bitstamp will facilitate the rapid global growth of Robinhood Crypto.
Introducing Institutional Services
In a groundbreaking move, Robinhood will enter the institutional market for the first time, leveraging Bitstamp’s renowned reputation for dependable trade execution, extensive order books, and top-notch API connectivity. Bitstamp’s array of institutional services, including its white label solution Bitstamp-as-a-service, institutional lending, and staking, will complement Robinhood’s current offerings. The integration of Bitstamp’s primary spot exchange, which boasts over 85 tradable assets, will further enrich Robinhood’s cryptocurrency portfolio.
Insights from Leadership
Johann Kerbrat, General Manager of Robinhood Crypto, highlighted the significance of this acquisition: “The acquisition of Bitstamp is a pivotal move in expanding our cryptocurrency business. Bitstamp’s globally trusted and long-standing exchange has demonstrated resilience through various market cycles. With a seamless blend of customer experience and security across different regions, the Bitstamp team has built one of the most reputable names among retail and institutional cryptocurrency investors.”
JB Graftieaux, CEO of Bitstamp, expressed his enthusiasm about the merger: “As the oldest-running cryptocurrency exchange in the world, Bitstamp is recognized as one of the most reliable and transparent cryptocurrency platforms globally. Integrating Bitstamp’s platform and expertise into Robinhood’s ecosystem will provide users with an enhanced trading experience while maintaining a strong commitment to compliance, security, and customer-centric values.”
Collaboration and Innovation
The merger will bring together Bitstamp’s team with Robinhood, fostering collaboration and innovation across continents. Customers of both Robinhood and Bitstamp can expect to receive the same level of service, security, and reliability. Transparency will remain a central focus throughout the integration process.
Financial and Advisory Details
The final deal consideration for the acquisition is estimated at around $200 million in cash, subject to customary purchase price adjustments. The completion of the acquisition is contingent upon regulatory approvals and other standard closing conditions. Barclays Capital Inc. served as the exclusive financial advisor to Robinhood, while Galaxy Digital Partners LLC acted as the exclusive financial advisor to Bitstamp.
As Robinhood and Bitstamp prepare for this transformative acquisition, the cryptocurrency market eagerly awaits the enhanced capabilities and extended reach that this merger is poised to deliver.