Robinhood to Accelerate Crypto’s Expansion by Acquiring Bitstamp for 200M Dollar
Robinhood Market has entered into an agreement to acquire global cryptocurrency exchange Bitstamp in a potential $200 million deal.
We’re accelerating Robinhood Crypto’s worldwide expansion. Robinhood has officially entered into an agreement to acquire @Bitstamp, a global cryptocurrency exchange with customers across the EU, UK, US and Asia.
— Robinhood (@RobinhoodApp) June 6, 2024
More details: https://t.co/wk3x02z0rU pic.twitter.com/aadKzhCxlx
Robinhood stated in a press release that acquiring a global exchange will help the company expand much faster on a global scale.
The statement further stated that through this acquisition, Robinhood will launch its first institutional venture. For reliable trade execution, extensive order books, and industry-leading API connectivity, Bitstamp has earned the trust of its institutional clients. Robinhood will enter the market with infrastructure, leading products, and active and established relationships thanks to Bitstamp's other institutional offerings, which include institutional lending, staking, and white-label solution Bitstamp-as-a-service. The main spot exchange of Bitstamp, which has over 85 tradable assets, along with services like lending and staking, will improve Robinhood's cryptocurrency portfolio.
It is anticipated by Robinhood that the final consideration for the deal will be approximately $200 million in cash, subject to customary adjustments to the purchase price. Robinhood also stated that it anticipates closing the $200 million deal in the first half of 2025, subject to customary closing conditions, including regulatory approvals. Robinhood's only financial advisor was Barclays Capital Inc., while Bitstamp's sole financial advisor was Galaxy Digital Partners LLC.
According to Johann Kerbrat, General Manager of Robinhood Crypto, "The Bitstamp team has established one of the strongest reputations among retail and institutional crypto investors by seamlessly coupling customer experience with safety across geographies."
"We are better positioned to welcome institutional customers to Robinhood and grow our footprint outside of the US thanks to this strategic combination."
Bitstamp is regarded as one of the most transparent and trusted cryptocurrency platforms globally, having been in operation for the longest time, stated JB Graftieaux, CEO of Bitstamp. “Users will have an improved trading experience with a continuous commitment to compliance, security, and customer-centricity when Bitstamp's platform and expertise are integrated into Robinhood's ecosystem.”
Disclaimer: This information should not be considered financial advice by any means. Please do your own research before making any investment decisions. The views in the articles are personal opinions only. Whale Insider is not responsible for any financial losses incurred.