Defying SEC Robinhood Now Buys Bitstamp Exchange For $200 Million

MENLO PARK, Calif. Friday, June 7, 2024- Online brokerage Robinhood has acquired a cryptocurrency exchange Bitstamp for a reported $200 million, defying ongoing scrutiny from the Securities and Exchange Commission (SEC) regarding its own crypto offerings.

“Robinhood Markets, Inc. has agreed to acquire Bitstamp Ltd., a global cryptocurrency exchange. Bitstamp was founded in 2011 and has offices in Luxembourg, the UK, Slovenia, Singapore, and the US,” a media release by GlobalNewswire said June 6, 2024.¹

“Robinhood expects the final deal consideration to be approximately $200 million in cash, subject to customary purchase price adjustments. The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first half of 2025. Barclays Capital Inc. served as the exclusive financial advisor to Robinhood. Galaxy Digital Partners LLC served as exclusive financial advisor to Bitstamp,” it said.

“This acquisition will introduce Robinhood’s first institutional business. Bitstamp has been trusted by its institutional clients for reliable trade execution, deep order books and industry-leading API connectivity,” the media release said.
It said:

“With Bitstamp’s other institutional offerings like white label solution Bitstamp-as-a-service, institutional lending, and staking, Robinhood will enter the space with active and established relationships, infrastructure and industry-leading products. Bitstamp’s core spot exchange, with over 85 tradable assets, and products like staking and lending, will enhance Robinhood’s Crypto offering.

“The acquisition of Bitstamp is a major step in growing our crypto business. Bitstamp’s highly trusted and long-standing global exchange has shown resilience through market cycles. By seamlessly coupling customer experience with safety across geographies, the Bitstamp team has established one of the strongest reputations across retail and institutional crypto investors,” said Johann Kerbrat, General Manager of Robinhood Crypto.

“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood,” it said.

“As the world’s longest-running cryptocurrency exchange, Bitstamp is known as one of the most trusted and transparent crypto platforms worldwide,” said JB Graftieaux, CEO of Bitstamp. ¹

“Bringing Bitstamp’s platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”

The SEC has previously raised concerns about Robinhood’s crypto platforms, questioning their compliance with securities regulations. The company is currently facing investigations from the SEC regarding its crypto products.

Robinhood has maintained that its crypto offerings comply with all applicable regulations. The company hasn’t commented on the specific reasons behind the recent acquisition.

Sources