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Robinhood buys cryptocurrency exchange Bitstamp for around $200 million
Robinhood Markets Inc. is buying cryptocurrency exchange Bitstamp for around $200 million as the company looks to accelerate its global cryptocurrency expansion
From
MICHELLE CHAPMAN AP Business Writer
June 6, 2024, 7:54 am ET
• 2 minute reading
Robinhood Markets Inc. is buying cryptocurrency exchange Bitstamp for about $200 million in cash as the company looks to accelerate its global cryptocurrency expansion.
Bitstamp, founded in 2011, has offices in Luxembourg, the United Kingdom, Slovenia, Singapore and the United States. It has more than 50 active licenses and registrations worldwide and customers across the European Union, United Kingdom, United States and Asia.
Robinhood said Thursday that this will be its first institutional business.
“Bitstamp’s highly trusted and long-standing global exchange has demonstrated resilience through market cycles. By seamlessly blending customer experience with security across all geographies, the Bitstamp team has established one of the most strong among retail and institutional cryptocurrency investors,” Johann Kerbrat, chief executive officer of Robinhood Crypto, said in a statement: “Thanks to this strategic combination, we are better positioned to expand our presence outside of the United States and welcoming institutional clients to Robinhood.”
The deal is expected to close in the first half of next year.
The news comes a month after Robinhood Markets announced it had received a I notify by the Securities and Exchange Commission regarding alleged securities violations in its crypto division.
The company said in a regulatory filing that it has received investigative subpoenas from the SEC on matters including cryptocurrency listings, cryptocurrency custody and platform operations.
Robinhood Crypto cooperated with the investigation, the company said.
Robinhood Markets shares rose more than 2% before the market open.