Robinhood (NASDAQ:HOOD), the favored stock-trading app, is increasing its presence within the cryptocurrency market with the acquisition of worldwide crypto trade Bitstamp for roughly $200 million. The transaction is predicted to finalize within the first half of 2025.
Robinhood, historically identified for enabling on a regular basis shoppers to commerce shares, has been step by step growing its involvement within the cryptocurrency sector. The corporate helps numerous widespread cryptocurrencies, together with Bitcoin, although it has beforehand restricted some as a consequence of U.S. regulatory scrutiny.
The acquisition of Bitstamp aligns with Robinhood’s technique to deepen its crypto choices and increase internationally. Robinhood launched its core stock-trading product within the U.Okay. final November and started providing crypto buying and selling within the European Union shortly after.
Based in Europe in 2011, Bitstamp is among the oldest cryptocurrency exchanges globally, facilitating buying and selling for firms and people. It was acquired by Belgian funding firm NXMH in 2018, with Ripple additionally shopping for a stake final yr.
Robinhood went public in mid-2021, initially thriving in the course of the pandemic earlier than seeing its valuation drop from an IPO peak of over $40 billion to under $10 billion. Nevertheless, the corporate has skilled a resurgence, with its valuation greater than doubling prior to now yr to $19 billion, pushed by document earnings. In Q1 2024, Robinhood reported a 16% improve in month-to-month lively customers year-over-year to 13.7 million and a 40% rise in revenues to $618 million. Notably, transaction-based income surged by 59% to $329 million, largely as a consequence of a 232% improve in cryptocurrency earnings, totaling $126 million.
With Bitstamp, Robinhood goals to boost its place amongst retail and institutional crypto traders in Europe, Asia, and the U.S. Bitstamp presently holds over 50 licenses and registrations to function in these areas.
“The acquisition of Bitstamp is a major milestone in increasing our crypto enterprise,” stated Johann Kerbrat, Robinhood’s crypto basic supervisor. “The Bitstamp staff has constructed one of many strongest reputations amongst each retail and institutional crypto traders. This strategic mixture positions us to increase our attain past the U.S. and appeal to institutional prospects to Robinhood.”
Featured Picture: DepositPhotos © burdun 2
Please See Disclaimer
