Robinhood has I agreed to the takeover Leading bitcoin and cryptocurrency exchange Bitstamp has sold for $200 million in cash, marking a significant expansion of its bitcoin and cryptocurrency businesses. The deal is expected to close in the first half of 2025.
BREAKING: Robinhood is buying #Bitcoin And BITSTAMP cryptocurrency exchange amounted to $200 million. pic.twitter.com/Q9LfBDw3Di
– Bitcoin Magazine (@BitcoinMagazine) June 6, 2024
Founded in 2011, Bitstamp is one of the oldest and most established cryptocurrency exchanges in the world. It operates across Europe, Asia and the US, with more than 50 licenses globally. The acquisition will bring Bitstamp's institutional and retail clients under the Robinhood umbrella.
Robinhood aims to leverage Bitstamp's reputation for flexibility and trust to enhance its bitcoin and cryptocurrency offerings. Bitstamp has gone through more than a decade of market cycles and has maintained high security standards.
The purchase comes as Robinhood faces scrutiny from the Securities and Exchange Commission (SEC) over its cryptocurrency division. However, Bitcoin and cryptocurrencies remain a major driver of growth, with transaction revenue from cryptocurrency trading jumping 40% in the past year. Acquiring an established platform like Bitstamp could significantly expand Robinhood's global reach.
The deal represents a “huge step in growing our cryptocurrency business” and will help Robinhood “expand our footprint outside the US and welcome institutional clients,” Robinhood managing director Johan Kerbrat said. “We believe cryptocurrencies will fundamentally reorganize the financial system,” says Vlad Tenev, CEO of Robinhood.
Robinhood already offers Bitcoin and cryptocurrency trading services in the European Union. But purchasing Bitstamp provides a ready customer base and regulatory licensing across multiple jurisdictions. As demand for Bitcoin increases, the acquisition will enable Robinhood to have increased trading volumes.
The post Robinhood To Buy Bitcoin and Crypto Exchange Bitstamp For $200M first appeared on Investorempires.com.
