Robinhood (NASDAQ:HOOD), the favored stock-trading app, is increasing its presence within the cryptocurrency market with the acquisition of world crypto trade Bitstamp for roughly $200 million. The transaction is anticipated to finalize within the first half of 2025.
Robinhood, historically identified for enabling on a regular basis shoppers to commerce shares, has been steadily growing its involvement within the cryptocurrency sector. The corporate helps numerous well-liked cryptocurrencies, together with Bitcoin, although it has beforehand restricted some resulting from U.S. regulatory scrutiny.
The acquisition of Bitstamp aligns with Robinhood’s technique to deepen its crypto choices and increase internationally. Robinhood launched its core stock-trading product within the U.Okay. final November and started providing crypto buying and selling within the European Union shortly after.
Based in Europe in 2011, Bitstamp is likely one of the oldest cryptocurrency exchanges globally, facilitating buying and selling for corporations and people. It was acquired by Belgian funding firm NXMH in 2018, with Ripple additionally shopping for a stake final yr.
Robinhood went public in mid-2021, initially thriving throughout the pandemic earlier than seeing its valuation drop from an IPO peak of over $40 billion to beneath $10 billion. Nonetheless, the corporate has skilled a resurgence, with its valuation greater than doubling previously yr to $19 billion, pushed by document earnings. In Q1 2024, Robinhood reported a 16% enhance in month-to-month energetic customers year-over-year to 13.7 million and a 40% rise in revenues to $618 million. Notably, transaction-based income surged by 59% to $329 million, largely resulting from a 232% enhance in cryptocurrency earnings, totaling $126 million.
With Bitstamp, Robinhood goals to boost its place amongst retail and institutional crypto buyers in Europe, Asia, and the U.S. Bitstamp presently holds over 50 licenses and registrations to function in these areas.
“The acquisition of Bitstamp is a big milestone in increasing our crypto enterprise,” mentioned Johann Kerbrat, Robinhood’s crypto common supervisor. “The Bitstamp group has constructed one of many strongest reputations amongst each retail and institutional crypto buyers. This strategic mixture positions us to increase our attain past the U.S. and appeal to institutional clients to Robinhood.”
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