Robinhood Buys Bitstamp To Expand Crypto, International Business
Online trading platform Robinhood Markets (HOOD) agreed to buy European cryptocurrency exchange Bitstamp for about $200 million, in a deal that will expand Robinhood's cryptocurrency and international business, according to a release Thursday.
«Acquiring a global exchange will significantly accelerate Robinhood Crypto’s expansion worldwide,» Robinhood said, noting that Bitstamp has over 50 active licenses and registrations across the globe, and will bring customers from across Europe and Asia along with the U.S. to its platform.
The deal will help grow Robinhood's presence outside of the U.S., as well as its Robinhood Crypto business. The company also recently moved to expand with products like credit cards, and by offering its app in the United Kingdom.
The crypto business has boosted Robinhood's earnings in recent quarters, with company reporting last month that revenue from its crypto business more than tripled in the first quarter from a year earlier to $126 million.
“The acquisition of Bitstamp is a major step in growing our crypto business," Robinhood Crypto General Manager Johann Kerbrat said, adding that «Bitstamp’s highly trusted and long standing global exchange has shown resilience through market cycles.»
However, Robinhood's crypto business has drawn scrutiny from regulators, as Robinhood said it received a Wells Notice from the Securities and Exchange Commission (SEC) last month, indicating that the regulator concluded an investigation that could lead to enforcement actions.
Robinhood said it expects its acquisition of Bitstamp to close by the first half of next year, pending regulatory approval.
Robinhood shares jumped over 5% to $22.70 as of 10:40 a.m. ET Thursday following the news, contributing to
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