Breaking News: Robinhood to Acquire Crypto Exchange ‘Bitstamp’ for $200M
The post Breaking News: Robinhood to Acquire Crypto Exchange ‘Bitstamp’ for $200M appeared first on Coinpedia Fintech News
Robinhood Markets Inc. (NASDAQ: HOOD) has announced that it has signed an agreement to acquire Bitstamp Ltd, a veteran centralized cryptocurrency exchange with reputable trading features. If the respective regulators approve, the $200 million deal is expected to be finalized in the first half of 2025.
Robinhood has indicated that the acquisition of Bitstamp will fuel its bid to expand outside the United States market. Furthermore, Bitstamp is already regulated in 50 different jurisdictions led by the United Kingdom, Europe, and Asia.
“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors,” Johann Kerbrat, General Manager of Robinhood Crypto, noted.
Market Impact of Robinhood’s Bid for Bitstamp
Previously, Ripple Labs acquired an undisclosed stake in Bitstamp from Pantera Capital. Robinhood’s bid for Bitstamp will further solidify retail traders’ heightened demand for digital assets. Moreover, Robinhood is a publicly traded company in the United States, with a market cap of about $20 billion.
Following the announcement, HOOD shares gained around 3 percent during the pre-market trading session, hovering around $22.14.
Earlier this year, Robinhood received a notice from the United States Securities and Exchange Commission (SEC) for allegedly violating security laws in its crypto division. To keep its revenue streaming, more so during the ongoing crypto bull market, Robinhoon will tap on Bitstamp.
“Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity,” JB Graftieaux, CEO of Bitstamp, noted.
