Robinhood Pushes Further Into Crypto Space With $200 Million Bitstamp Acquisition

Robinhood (HOOD) announced Thursday that it has entered into an agreement to acquire Bitstamp, a UK-based crypto exchange, for ~$200 million in cash.

Founded in 2011, Bitstamp is the world's longest-actively running crypto exchange.

The company currently holds more than 50 active licenses and registrations globally, giving Robinhood much deeper access to European customers. Bitstamp revealed last year that 65% of the firm's revenue stemmed from the continent.

In December, Robinhood launched commission-free crypto trading in the EU and stated that it was doubling down in Europe.

The acquisition will also allow Robinhood to serve an institutional crypto client base, putting it in direct competition with Coinbase and Kraken.

The deal, anticipated to be finalized in the first half of 2025, coincides with a period of rapid growth for Robinhood's crypto business, which is also navigating regulatory challenges. Only a month ago, Robinhood disclosed that it had received a Wells Notice from the SEC over alleged violations of securities laws.

This isn't Bitstamp's first acquisition; it was acquired by NXMH, a PE firm from Brussels that also owns Korbit, a South Korean cryptocurrency exchange. While the terms were never disclosed, rumors circulated that the deal was around $400 million.