Robinhood acquires Bitstamp to grow crypto and global operations

Robinhood Markets (HOOD), an online trading platform, announced on Thursday its agreement to purchase European cryptocurrency exchange Bitstamp for approximately $200 million. The acquisition aims to bolster Robinhood's presence in cryptocurrency and international markets. Robinhood emphasized that acquiring Bitstamp, with its extensive global regulatory approvals and customer base spanning Europe, Asia, and the U.S., will accelerate the expansion of Robinhood Crypto worldwide.

Robinhood expands crypto and global operations

The agreement will expand Robinhood's international footprint and strengthen its Robinhood Crypto division. Recently, the company has diversified its offerings with products such as credit cards and expanded its app availability to the United Kingdom.

Robinhood's crypto business has significantly contributed to its earnings, with revenue from this sector more than tripling year-over-year to $126 million in the first quarter, as reported last month.

Johann Kerbrat, General Manager of Robinhood Crypto, described the acquisition of Bitstamp as a pivotal move in advancing their crypto operations, noting Bitstamp's reputable global exchange and resilience across market cycles.

However, Robinhood's crypto activities have attracted regulatory attention, with the company disclosing receipt of a Wells Notice from the Securities and Exchange Commission (SEC) last month, indicating the conclusion of an investigation that may lead to enforcement actions.

Pending regulatory approvals, Robinhood anticipates finalizing its acquisition of Bitstamp by the first half of next year.