Online brokerage Robinhood Markets (HOOD) has announced that it is buying privately held cryptocurrency exchange Bitstamp for $200 million U.S. in cash.
The acquisition is the largest deal in Robinhood’s 11-year history and moves it further into the trading of cryptocurrencies.
Analysts say the purchase of Bitstamp puts Robinhood in direct competition with the largest cryptocurrency exchanges, Binance and Coinbase (COIN).
Bitstamp will not only power the growth of cryptocurrency trading on Robinhood’s trading app and online trading platform, but it also becomes the company’s first institutional business.
Bitstamp's crypto exchange is already hugely popular in Europe and Asia. It offers more than 85 tradable assets and includes products such as staking and lending.
The cash deal is expected to close in the first half of 2025 and comes as Robinhood's cryptocurrency business is seeing rapid growth fueled by price increases for digital assets.
Crypto trading was largely responsible for Robinhood reporting record first-quarter financial results this year.
Trading in crypto has also been given a boost by the launch of spot Bitcoin (BTC) exchange-traded funds (ETFs) earlier this year.
Robinhood's stock has risen 74% this year and more than doubled in the last 12 months to trade at $21.57 U.S. per share.
