Key Takeaways
- Robinhood to purchase European cryptocurrency exchange Bitstamp for about $200 million
- Deal to expand Robinhood’s cryptocurrency and international business
- Regulators scrutinizing Robinhood’s crypto business
Robinhood’s Acquisition of Bitstamp
Online trading platform Robinhood Markets has agreed to buy European cryptocurrency exchange Bitstamp for approximately $200 million. This strategic move is aimed at expanding Robinhood’s presence in the cryptocurrency market and international arena.
Expansion of Robinhood’s Crypto Business
The acquisition of Bitstamp will significantly accelerate the growth of Robinhood Crypto worldwide. Bitstamp’s extensive global presence with over 50 active licenses and registrations across the globe will bring in customers from Europe, Asia, and the U.S. to Robinhood’s platform.
Boosting Presence and Revenue
Robinhood’s foray into the crypto business has not only expanded its international reach but also contributed to a substantial increase in revenue. In the first quarter of this year, the company reported a revenue surge of over $126 million from its crypto business, marking a significant growth from the previous year.
Regulatory Scrutiny
Despite its success, Robinhood’s crypto business has come under regulatory scrutiny. The Securities and Exchange Commission (SEC) issued a Wells Notice to Robinhood, indicating a potential enforcement action following an investigation into the company’s operations.
Anticipated Closing and Market Response
Robinhood expects the acquisition of Bitstamp to be finalized by the first half of next year, pending regulatory approval. The market responded positively to the news, with Robinhood shares surging over 5% to $22.70 on Thursday morning, reflecting a 78% gain since the beginning of the year.
