The latest development in the crypto industry saw a massive deal take place between Robinhood and Bitstamp, with the cryptocurrency and investment platform acquiring the renowned company for $200 million. The deal was finalizedearlier today, and this marks a significant development for the crypto industry which will offer improved experiences in the future.
It is also a strategic one for Robinhood as Bitstamp is known for its many licenses present worldwide, with this acquisition proving to be a central piece in its plans for global expansion.
Robinhood Acquires Bitstamp for $200 Million
The latest press release from Robinhood announced that it reached an agreement with Bitstamp to acquire the company for $200 million, with its deal expected to close in the first half of 2025. This deal empowers more of Robinhood's crypto exchange platform, with Bitstamp known for its massive operations in the industry since its establishment in 2011.
Bitstamp's 13-year operations have been stellar, with the company having different base of operations in Luxembourg (EU), the United Kingdom, Slovenia (EU), Singapore (Asia), and the United States.
According to Robinhood, this acquisition also marks its first institutional business, with Bitstamp trusted by its institutional clients for trade execution feats. Additionally, Bitstamp's core spot exchange with more than 85 tradeable assets will help enhance Robinhood Crypto.
The company said that Bitstamp's workforce will join forces with Robinhood Crypto, offering the same experiences present before, moving forward with its merger.
Robinhood's Global Expansion Plans
Another massive reason for Robinhood's recent acquisition of Bitstamp is its plans to expand Robinhood Crypto on a global scale, and this deal will help make it possible. Bitstamp currently has 50 active licenses and registrations worldwide, and Robinhood claimed that it will help bring in more customers from Asia, the EU, the UK, and the US.
Robinhood's Renowned Operations
Robinhood came from humble beginnings together with its CEO and founder, Vladimir Tenev, with the company initially launching in 2016 and was previously called Robinhood Gold. It first stood as an investment platform that offered massive trading opportunities for traders initially, but it then expanded as a full-blown trading app available for all.
The 2021 stock trading event which saw GameStop, American Airlines, meme coins, and more's massive rise was because of Robinhood's platform. While it initially focused on stock trading for various public companies, it also included cryptocurrency deals on the platform even before it started its IPO, previously banking solely on Dogecoin and snubbed other cryptos.
Its foray into cryptocurrencies initially started by setting its platform up as a crypto wallet where users may store their digital assets like cryptos and NFTs on the platform. Robinhood then evolved into a crypto exchange company alongside its trading features, and with this recent acquisition of Bitstamp, the company is one step closer to increasing its presence globally.
