Bitcoin
Robinhood buys Bitstamp to expand crypto, international business
Key Takeaways
- Online trading platform Robinhood has agreed to buy European cryptocurrency exchange Bitstamp for around $200 million.
- The deal will help expand Robinhood’s cryptocurrency business, which has grown in recent quarters, especially in several international markets where Bitstamp operates.
- The expansion comes as Robinhood’s existing crypto business draws scrutiny from regulators, with the SEC sending the company a pit notice last month indicating possible enforcement action.
Online trading platform Robinhood Markets (HOOD) has 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 statement released Thursday.
“The acquisition of a global exchange will significantly accelerate Robinhood Crypto’s expansion around the world,” Robinhood said, noting that Bitstamp has more than 50 active licenses and registrations worldwide and will bring customers from across Europe and Asia along with the USA, for its platform.
Robinhood’s Rising Crypto, International Business
The deal will help grow Robinhood’s presence outside the US, as well as your Robinhood Crypto business. The company has also recently moved to expand with products such as credit cardsand offering your application in the UK.
The crypto business has increased Robinhood earnings in recent quarters, with the 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 an important step in the growth of our crypto business,” said Robinhood Crypto General Manager Johann Kerbrat, adding that “Bitstamp’s long-standing and highly reliable global exchange has shown resilience through market cycles.” ”.
However, Robinhood’s crypto business has drawn scrutiny from regulators as it Robinhood said it received The Wells Notice in Securities and Exchange Commission (SEC) last month, indicating that the regulator has concluded an investigation that could lead to enforcement action.
Robinhood said it expects the Bitstamp acquisition to close in the first half of next year, pending regulatory approval.
Robinhood shares jumped more than 5% to $22.70 at 10:40 a.m. ET Thursday following the news, contributing to its 78% gain since the start of the year.