Investing
Robinhood bets big on crypto with $200 million deal for Bitstamp By Reuters
![](https://personalfinancedefined.com/wp-content/uploads/2023/02/LYNXNPEB7Q0U9_L.jpg)
By Manya Saini
(Reuters) -Trading platform Robinhood (NASDAQ:) Markets said on Thursday it has agreed to buy crypto exchange Bitstamp for about $200 million in cash, speeding up a broader push into digital assets with its biggest-ever deal.
Robinhood, whose shares were up 3.4% before the bell, has been looking to expand its product offerings to become a full-fledged financial services provider.
The acquisition of Bitstamp, which was founded in 2011 and holds 50 active licenses and registrations globally, puts Robinhood in direct competition with industry giants such as Binance and Coinbase (NASDAQ:).
Bitstamp’s core spot exchange, popular in Europe and Asia, has over 85 tradable assets, and the deal is expected to power the growth of Robinhood Crypto.
“We are in our early days in the EU and we are excited to keep expanding there and beyond. The acquisition of Bitstamp will accelerate our global expansion,” Johann Kerbrat, vice president and general manager of Robinhood Crypto, told Reuters.
The deal, expected to close in the first half of 2025, comes at a time when Robinhood’s crypto business is seeing rapid growth but also facing regulatory hurdles in the United States.
Kerbrat said the company intends to keep communicating with regulators as it moves forward.
Robinhood’s crypto business was the driving force behind a massive first-quarter earnings beat in May, but that same week, it also disclosed that it received a so-called Wells notice from the U.S. Securities and Exchange Commission over tokens traded on its platform.
The notice is issued when the regulator plans to bring enforcement action against a company.
The markets regulator has argued that crypto tokens should be considered securities and subject to its registration rules. Crypto firms, on the other hand, have accused the SEC of overreach.
Robinhood’s stock has surged 69% this year after saying it plans to focus on “profitable growth”. Analysts expect it is primed for more gains amid a resurgence of retail trading and increasing crypto adoption.
Barclays Capital and Galaxy Digital were the exclusive financial advisers to Robinhood and Bitstamp, respectively.
Read the full article here
![](https://personalfinancedefined.com/wp-content/uploads/2023/02/pf-logo.png)
-
Investing6 days ago
Mark Zuckerberg Reveals the Future Meta AI, Tech Industry
-
Personal Finance4 days ago
Today's mortgage rates rise for 15- and 30-year terms | July 2, 2024
-
Passive Income4 days ago
What’s Former ‘Jeopardy!’ Host Mayim Bialik Up to Now?
-
Side Hustles6 days ago
A Buddy’s Franchise is Built for Success in a Recession Resistant Industry
-
Investing5 days ago
Floor & Decor Holdings stock slides after Spruce Point short report By Investing.com
-
Passive Income6 days ago
Warren Buffett Changes His Will, Gates Foundation Donations
-
Side Hustles6 days ago
The Key to Preparing Your Business for an Eventual Investment or Sale
-
Side Hustles4 days ago
Improve Your Vocabulary in Just 10 Minutes a Day With This App, Now $9.99