Robinhood Expands Crypto Business with Bitstamp Acquisition

Online trading platform Robinhood has agreed to purchase European cryptocurrency exchange Bitstamp for approximately $200 million. This strategic move aims to expand Robinhood’s cryptocurrency business, which has seen significant growth in recent quarters, particularly in international markets where Bitstamp operates.

Growing Crypto and International Presence

The acquisition will help Robinhood strengthen its presence outside of the United States and bolster its Robinhood Crypto business. The company has been expanding its offerings, including the introduction of credit cards and the launch of its app in the United Kingdom.

Crypto Business Surges, Despite Regulatory Scrutiny

Robinhood’s crypto business has been a significant contributor to the company’s earnings, with revenue more than tripling in the first quarter to $126 million. However, the company’s crypto business has also drawn scrutiny from regulators, with the Securities and Exchange Commission (SEC) issuing a Wells Notice last month, indicating potential enforcement actions.

Bitstamp’s Resilience and Global Reach

“The acquisition of Bitstamp is a major step in growing our crypto business,” said Johann Kerbrat, General Manager of Robinhood Crypto. “Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles.”

Regulatory Approval and Future Plans

Robinhood expects the acquisition to close by the first half of next year, pending regulatory approval. As the company continues to expand its crypto business, it will be important to navigate the regulatory landscape and address any concerns from authorities.

Cryptocurrency trading on the rise

Conclusion

Robinhood’s acquisition of Bitstamp marks a significant milestone in the company’s efforts to expand its crypto business and international presence. As the cryptocurrency market continues to evolve, it will be important to monitor regulatory developments and the company’s response to these changes.