Crypto M&A | Jun 7, 2024

Image: press release

Robinhood Flies in the Face of the SEC and Acquires Bitstamp Crypto Exchange After Receiving Wells Notice

While under crypto-related regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC), Robinhood has announced the acquisition of the European cryptocurrency exchange Bitstamp for $200 million to boost Robinhood’s crypto trading capabilities and expand its customer base in Europe.

See:  SEC Issues Wells Notice to Robinhood Over Crypto

Bitstamp Acquisition

• Bitstamp, founded in 2011 and based in Luxembourg, is a top 20 centralized crypto exchange with a reputation for reliability and security.
• Institutional clients trust Bitstamp for its extensive order books, dependable trade execution, high quality API access, institutional lending, staking, and the white label solutions with Bitstamp-as-a-service.
• Has more than 50 active licenses and registrations worldwide and can push clients to Robinhood from the US, EU, UK, and Asia.
• Daily trading volume of approx. $315 million serving more than 4 million customers in 100 countries according to Coinmarket cap

Robinhood’s Crypto Expansion

• In 2023, Robinhood reported $1.9 billion in total revenue, a 37% year-over-year gain. View full Q4 and 2023 financial results here.
• 23 million active, funded users.

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• Crypto trading volume rose by 30% in the first quarter of 2024
• Through the acquisition of Bitstamp, Robinhood expands its user base, improves operational skills, and receives access to a reputable cryptocurrency platform. Significant synergies from this transaction are anticipated, strengthening Robinhood’s position as a competitor in the cryptocurrency marketplaces.
• Bitstamp’s core spot market, which features over 85 traded assets and provides services like lending and staking, will enhance Robinhood’s cryptocurrency offering.

Over the past few years, the company has steadily expanded its crypto services – here’s a brief overview timeline:

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• Mar 2024:  Launches crypto wallet for android users.
• Dec 2023: Adds a cryptocurrency wallet function, giving customers more control over their digital assets.
• Oct 2023:  Robinhood begins its European development plan with the goal of growing its market share outside of the United States.
• Aug 2023:  Fined $30 million by New York’s DFS.
• Aug 2023: New coins are added to Robinhood’s trading platform as part of an expansion of its cryptocurrency offerings.

Outlook

The company’s ability to navigate regulatory challenges while pursuing ambitious acquisitions will be critical in maintaining its momentum and achieving long-term success in the highly competitive crypto industry.

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• Source: https://ncfacanada.org/robinhood-acquires-bitstamp-crypto-exchange-for-200-m/