Inventory buying and selling platform Robinhood dives deeper into cryptocurrency with the acquisition of crypto change Bitstamp.
Robinhood mentioned it expects the deal to shut within the first half of 2025, with the ultimate worth of the deal round $200 million.
Whereas Robinhood is best recognized for its inventory buying and selling companies that permit common shoppers to spend money on a number of the world's largest publicly traded firms, it’s shifting additional into crypto territory with help for most of the hottest cryptocurrencies together with Bitcoin, albeit for probably the most half. 12 months restricted a number of the cryptos it helps on account of regulatory scrutiny within the US
Extra crypto and international growth
Immediately's announcement alerts not solely California-based Robinhood's continued push into cryptocurrencies, but in addition its worldwide growth efforts, which kicked off with the launch of its flagship inventory buying and selling product within the UK final November, adopted shortly thereafter by the launch of cryptocurrency buying and selling within the European Union. (EU).
Based exterior of Europe in 2011, Bitstamp is without doubt one of the oldest cryptocurrency exchanges on this planet, permitting firms and people to commerce a wide range of cryptocurrencies. It was purchased by a Belgian funding firm referred to as NXMH in 2018, with Ripple buying a stake solely final 12 months.
Robinhood went public in mid-2021, and like many corporations throughout the pandemic, the corporate noticed its preliminary fortunes crumble because the world returned to regular — its $32 billion IPO valuation ballooned to greater than $40 billion USD. one level earlier than falling into a gentle decline nicely under the $10 billion mark for many of the previous two years.
However the firm has seen its valuation greater than double to $19 billion over the previous 12 months, due to report earnings. In Could's Q1 2024 report, Robinhood mentioned its month-to-month lively customers rose 16% year-over-year to 13.7 million, whereas its income rose 40% to $618 million. Specifically, the corporate mentioned its transaction-based income particularly rose 59% to $329 million, pushed primarily by $126 million in cryptocurrency income — a 232% enhance.
With Bitstamp underneath its wing, Robinhood says it will likely be higher positioned to focus on retail and institutional crypto buyers throughout Europe, Asia and the US, with Bitstamp at the moment holding greater than 50 licenses and registrations to function in these markets.
“The acquisition of Bitstamp is a major step within the progress of our crypto enterprise,” Robinhood normal supervisor of cryptocurrencies Johann Kerbrat mentioned in a press release. “The Bitstamp crew has constructed one of many strongest reputations amongst retail and institutional crypto buyers. With this strategic mixture, we’re higher positioned to develop our footprint exterior the US and welcome institutional clients to Robinhood.”
