HOOD stock rose 3% in premarket trading.
The move comes as Robinhood, the 11-year-old trading app well-known among retail investors, aims to grow into a comprehensive financial services provider by broadening its product range. By acquiring Bitstamp, which was established in 2011 and holds 50 active licenses and registrations worldwide, Robinhood is set to compete directly with major industry players like Binance and Coinbase (NASDAQ:COIN).
Bitstamp is expected to drive the expansion of Robinhood Crypto and will become its first institutional business. Bitstamp’s core spot exchange, which is particularly popular in Europe and Asia, offers over 85 tradable assets and includes services such as staking and lending.
“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,” 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.”
The deal is anticipated to close in the first half of 2025, amid rapid growth in Robinhood’s crypto business as well as regulatory challenges in the U.S. Robinhood’s spokesperson emphasized that the company will continue to engage with regulators as it moves forward with the acquisition.
Source: Cryptocurrency - investing.com
