Home » Cryptocurrency » Robinhood Makes a Deal with Bitstamp

Robinhood Makes a Deal with Bitstamp

A trading platform for stock and cryptocurrencies, Robinhood, plans to acquire global cryptocurrency exchange Bitstamp. Announced on June 6, this deal is valued at around $200 million. The acquisition is expected to close in early 2025, expanding Robinhood’s reach in the crypto world.

Robinhood and Bitstamp logos symbolizing acquisition deal
Source: https://www.digitaltrends.com/mobile/what-is-robinhood/

What’s the Deal with Robinhood? 

Robinhood stands to gain significantly from acquiring Bitstamp. Bitstamp has over 50 active licenses and registrations to operate as a crypto exchange in many countries. This will greatly increase Robinhood’s presence in the crypto market. 

With this strategic move, Robinhood will access Bitstamp’s vast customer base. Bitstamp’s customers are spread across the European Union, the United Kingdom, Asia, and the United States. Moreover, Bitstamp has a robust institutional client base, which Robinhood has lacked. 

According to Drayton D’Silva, CEO and Chief Investment Officer at Tower Hills Capital, “The deal accelerates Robinhood’s international expansion. It instantly gives it access to international institutional crypto clients without the need for extensive licensing processes across Europe and Asia. It also diversifies Robinhood’s revenue.” 

The deal is expected to be worth approximately $200 million in cash. However, this amount could change due to customary purchase price adjustments. 

Both parties aim to finalize the deal in the first half of 2025. This is subject to regulatory approvals and other customary closing conditions. 

Robinhood used Barclays Capital as its financial advisor, while Galaxy Digital Partners advised Bitstamp. 

Robinhood and Crypto  

Founded in 2013, Robinhood is a well-known investing app. It became popular due to its commission-free trading and user-friendly interface. However, it has faced criticism for “gamifying” investing and its practice of payment for order flow. 

Robinhood entered the crypto industry in 2018 with commission-free trading of Bitcoin and Ethereum. Since then, it has expanded its crypto offerings, adding many other cryptocurrencies. In 2022, Robinhood introduced a crypto wallet. 

Recently, crypto has significantly contributed to Robinhood’s profitability. In the first quarter of 2024, the company reported record revenue, driven by a 232% increase in revenue from cryptocurrency transactions. 

To expand its crypto offerings further, acquiring an established cryptocurrency exchange makes sense for Robinhood. Bitstamp, founded in 2011, is one of the oldest crypto exchanges. It is known for its user-friendly platform and reasonable trading fees, making it attractive to beginner crypto investors. 

In What State is Crypto Currently? 

Robinhood’s acquisition of Bitstamp is likely to increase its market share, challenging major competitors like Coinbase. This comes as the crypto winter seems to be ending. Regulators and politicians appear to be softening their stance on cryptocurrencies. 

Earlier this year, the Securities and Exchange Commission (SEC) approved 11 spot Bitcoin exchange-traded funds (ETFs). More recently, the SEC took the first step toward approving spot Ethereum ETFs. This marked a significant shift in the SEC’s attitude towards cryptocurrencies. 

Robinhood’s acquisition of Bitstamp is another sign that the crypto industry is moving towards greater mainstream acceptance. 

Michael Baynes, co-founder and CEO of Clarify Capital, stated, “For the wider crypto market, this deal could boost mainstream adoption and trust in cryptocurrencies. More people will see a well-known brand like Robinhood getting deeper into crypto, which might increase confidence among hesitant investors. It could also push other financial platforms to improve their crypto services, leading to more innovation and competition. This, in turn, could result in better services and more options for users.” 

Investors should watch this deal closely as it progresses. Time will reveal how well Robinhood integrates Bitstamp’s platform and meets the needs of crypto investors. 

Key Points of the Robinhood-Bitstamp Deal: 



Deal Value 

Approximately $200 million 

Expected Closing Date 

Early 2025 

Financial Advisors 

Barclays Capital for Robinhood, Galaxy Digital Partners for Bitstamp 

Regulatory Approvals 


Customer Base 

EU, UK, Asia, and the US 

Strategic Benefits 

International expansion, institutional clients 

Revenue Impact 

Diversification and growth potential 

Historical Significance 

Robinhood’s first major crypto acquisition 


Robinhood’s acquisition of Bitstamp could significantly impact the crypto industry. It might boost mainstream adoption and push other platforms to enhance their crypto services. The success of this deal depends on Robinhood’s ability to integrate Bitstamp and satisfy crypto investors’ needs.

June 22, 2024 at 4:00 pm

Updated June 22, 2024 at 4:00 pm


Remember, investing in cryptocurrencies involves risks, and it’s important to conduct thorough research and seek professional advice before making any financial decisions. (Please keep in mind that this post is solely for informative purposes and should not be construed as financial or investment advice.)


Cryptocurrency is a digital form of currency secured by cryptography, not controlled by governments or banks.

Cryptocurrency wallets are digital tools for storing and managing your crypto assets.

Best practices for crypto investment include research, diversification, investing what you can afford to lose, and avoiding hype-driven investments.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top