Robinhood Agrees To Buy Bitstamp For $200 Million, Signaling Intent To Challenge Binance, Coinbase

Robinhood
Markets
agreed
to
buy
crypto
exchange
Bitstamp
for
about
$200
million
in
cash
as
the
trading
platform
accelerates
its
expansion
into
digital
assets,
signaling
greater
competition
for


Coinbase

and
Binance.

“Acquiring
a
global
exchange
will
significantly
accelerate
Robinhood
Crypto’s
expansion
worldwide,”
Bitstamp

said
in
a
statement.
“Bitstamp
holds
over
50
active
licenses
and
registrations
globally
and
will
bring
in
customers
across
the
EU,
UK,
US
and
Asia
to
Robinhood.”

The
exchange
has
about
500
staff,
and
offices
in
Luxembourg,
Singapore,
Slovenia,
the
UK
and
the
US.

Bitstamp
Acquisition
To
Put
Robinhood
In
Competition
With
Coinbase
And
Binance

Bitstamp’s
core
spot
trading
services
are
popular
in
Europe
and
Asia,
offering
its
users
the
ability
to
trade
more
than
85
tradable
assets. 

Robinhood
wants
to
compete
with
Coinbase

This
is
bullish

pic.twitter.com/F9HQ2aXqWL

—
borovik
(@3orovik)

June
6,
2024

This
new
deal,
which
is
expected
to
close
within
the
first
half
of
2025,
puts
Robinhood
in
direct
competition
with
crypto
exchange
giants
Coinbase
and
Binance.

“The
acquisition
of
Bitstamp
will
accelerate
our
global
expansion,”
the
company’s
Vice
President
and
General
Manager
Johann
Kerbrat
told
Reuters.

It
follows
a
successful
first-quarter
performance
for


Robinhood,
and
an
86%
surge
in
the
company’s


stock

price
this
year
after
it
vowed
to
chase
profitable
growth.

SEC
Issue
A
Wells
Notice

Amid
its
recent
success
and
rapid
growth,
the
trading
business
has
also
come
under
regulatory
scrutiny.
Robinhood
revealed
that
it
received
a
Wells
Notice
from
the
US
Securities
and
Exchange
Commission
(SEC)
on
May
6,
which
could
be
a
precursor
to
upcoming
enforcement
action
by
the
regulator.

The
SEC
is
accusing
Robinhood
Crypto
of
securities
violations
under
“Sections
15(a)
and
17A
of
the
Securities
Exchange
Act
of
1934,”
according
to
a


filing. 

Robinhood
Chief
Legal
Officer
Dan
Gallagher
on
the
????????
SEC
wells
notice:

“After
years
of
good
faith
attempts
to
work
with
the
SEC
for
regulatory
clarity
including
our
well-known
attempt
to
‘come
in
and
register,’
we
are
disappointed
that
the
agency
has
decided
to
issue
a
Wells…

pic.twitter.com/61WXTPogVI

—
Lior
(@liorsela)

May
6,
2024

Robinhood


said
it
was

“disappointed”
by
the
action
after
it
had
made
years
of
”good
faith”
attempts
to
work
with
the
SEC
and
comply
with
evolving
US
regulation.

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