Tuesday, 5th November 2024

Robinhood Acquires Slovenia-Founded Bitstamp for $200 Million to Expand Globally

U.S. financial services company Robinhood has acquired Bitstamp, a cryptocurrency exchange originally launched in Slovenia and now based in Luxembourg, in a strategic move to bolster its global presence with a deal valued at around $200 million

Robinhood, the American financial services company, has announced its acquisition of Bitstamp, one of the world’s oldest cryptocurrency exchanges based in Luxembourg, in a deal valued at approximately $200 million. This all-cash transaction is set to enhance Robinhood’s strategic objective of broadening its international reach and is expected to be finalized in the first half of 2025.

Founded in Slovenia in 2011 before moving its operations to Luxembourg and the U.K., Bitstamp has seen a dip in its market share in recent years. Despite this, it maintains a significant customer base spread across Europe, the UK, Asia, and the U.S., ranking 16th in trading volume among cryptocurrency exchanges globally.

The acquisition is poised to significantly alter Robinhood’s cryptocurrency operations, which currently rely on obtaining Bitcoin and other digital currencies from market makers. With Bitstamp under its wing, Robinhood will not only source cryptocurrencies directly from its exchange but will also potentially offer its customers a platform to engage in trading activities directly. This strategic move is aimed at consolidating Robinhood’s foothold in the crypto market while expanding its operational landscape.

Must Read

EU to Launch Probe into Chinese Retail Platform Temu over Potential Sale of Illegal Products

This move follows an inquiry sent to Temu on October 11 under the EU’s Digital Services Act (DSA), which seeks clarification on the steps...