The stock trading platform is aiming to expand its crypto business overseas
Robinhood is purchasing U.K.-based crypto exchange Bitstamp for $200 million in order to expand outside the U.S. The trading platform aims to expand its global presence in cryptocurrency and attract institutional clients with new product offerings. The acquisition is an all-cash deal expected to close in the first half of 2025.
Following the news, Robinhood’s stock soared over 6%, trading at around $22 on Thursday afternoon, reaching a new 52-week high.
Johann Kerbrat, the general manager of Robinhood Crypto, told The Wall Street Journal that the decision to purchase the exchange was driven by increasing customer demand for cryptocurrency products.
“Everything we’ve been doing in the past few years has been because our engagement from customers has been that they want more crypto products,” he said in an interview with the WSJ.
The news of the acquisition comes as the Securities and Exchange Commission is monitoring Robinhood’s crypto arm for allegedly violating securities laws.
Robinhood has long been a crypto advocate and was one of the first platforms to allow Dogecoin trading on its app. As a result, 62% of its crypto revenue came from Dogecoin in 2021. Moreover, it launched a cryptocurrency wallet in the same year that gained popularity among investors.
Bitstamp was established in 2011 and has become one of Europe’s largest cryptocurrency exchanges. Currently, it offers spot trading for nearly 100 cryptocurrencies, along with services like staking and lending.
For this deal, Barclays Capital Inc. was Robinhood’s exclusive financial advisor, while Galaxy Digital Partners LLC served as Bitstamp’s exclusive financial advisor. The team of Bitstamp will collaborate with Robinhood to foster innovation and knowledge sharing across continents, per the release.
“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,” said JB Graftieaux, CEO of Bitstamp.
This is not the first time that a U.S.-based crypto company is has shown interest in expanding globally. In the past, Coinbase has also expressed an interest in making a stake overseas.
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