Robinhood is significantly expanding its presence in the cryptocurrency market with its acquisition of the crypto exchange Bitstamp.
On Thursday, Robinhood announced that it anticipates the final transaction value to be around $200 million, with the deal expected to close in the first half of 2025.
Renowned for democratizing stock trading, Robinhood has been gradually intensifying its focus on cryptocurrencies. Over the years, the company has introduced support for several major cryptocurrencies, including Bitcoin.
However, regulatory scrutiny in the U.S. led to the restriction of certain cryptocurrencies on its platform last year.
A Strategic Move for Crypto and Global Growth This acquisition underscores Robinhood’s commitment not only to the cryptocurrency sector but also to its international expansion ambitions.
The California-based company rolled out its core stock-trading service in the U.K. last November, followed by the introduction of crypto trading in the European Union (EU).
Founded in Europe in 2011, Bitstamp is one of the world’s oldest cryptocurrency exchanges, catering to both individual and corporate traders. In 2018, the Belgian investment firm NXMH acquired Bitstamp, and last year, Ripple also purchased a stake in the company.
Robinhood, which went public in mid-2021, experienced a rollercoaster trajectory post-IPO. Initially valued at $32 billion, its valuation soared to over $40 billion before plummeting below $10 billion as the pandemic-fueled trading boom subsided.
Nevertheless, Robinhood’s fortunes have seen a remarkable turnaround over the past year. The company’s valuation has more than doubled to $19 billion, propelled by record earnings.
In its Q1 2024 report released in May, Robinhood reported a 16% year-on-year increase in monthly active users, reaching 13.7 million.
Revenues surged by 40% to $618 million, with transaction-based revenue climbing by 59% to $329 million. Notably, cryptocurrency-related income skyrocketed by 232%, totaling $126 million.
