Robinhood’s $200 Million Bitstamp Acquisition to Expand Crypto Footprint

By: Eliza Bennet

In a move poised to reshape the digital finance landscape, Robinhood has announced its acquisition of global crypto exchange Bitstamp for approximately $200 million in cash. The deal, pending regulatory approvals, is slated for completion in the first half of 2025. Esteemed financial advisors Barclays and Galaxy Digital Partners represent Robinhood and Bitstamp in this strategic acquisition.

Bitstamp, established in 2011, boasts a significant global presence, operating in regions such as Luxembourg, the UK, Slovenia, Singapore, and the US, with over 50 active licenses and registrations. This acquisition aims to leverage Bitstamp’s strong regulatory standing to fortify Robinhood’s position in the crypto market. By incorporating Bitstamp’s extensive network, Robinhood intends to accelerate its expansion across Europe, the UK, the US, and Asia.

During a recent interview with CNBC, Robinhood CEO Vlad Tenev underscored the challenges faced by the company in meeting US regulatory requirements, following a Wells Notice issued by the SEC. Tenev remarked, “We tried to create what we call a special purpose broker-dealer for transacting in crypto assets… Unfortunately, a clear path forward with the SEC never emerged, and they did not reciprocate our efforts.”

This acquisition is anticipated to bolster Robinhood’s crypto market foothold, attracting institutional clients with an enhanced suite of product offerings. Bitstamp’s institutional services—including white-label solutions, institutional lending, and staking—will be seamlessly integrated into Robinhood’s ecosystem. Moreover, Bitstamp’s core spot exchange, featuring over 85 tradable assets, will further diversify Robinhood's crypto offerings.

Johann Kerbrat, General Manager of Robinhood Crypto, emphasized the strategic nature of this acquisition, noting how Bitstamp's established reputation and market resilience would help grow Robinhood’s crypto business. Complementing this sentiment, Bitstamp CEO JB Graftieaux highlighted the improved trading experience and steadfast commitment to compliance, security, and customer-centricity that the integration promises to deliver.

The merger is expected to lay the foundation for Robinhood’s inaugural institutional business segment, capitalizing on Bitstamp’s robust platform and industry expertise. This strategic alliance sets the stage for Robinhood to expand its footprint beyond the US and attract a broader spectrum of institutional clients, fostering increased collaboration, innovation, and knowledge sharing across continents.