This acquisition will bring Bitstamp's globally-scaled crypto exchange to
Robinhood, with retail and institutional customers across the EU, UK, US and
Asia.
This strategic combination better positions Robinhood to expand outside of the
US and will bring a trusted and reputable institutional business to Robinhood.
Expected to close in the first half of 2025, subject to customary closing
conditions, including regulatory approvals.
MENLO PARK, Calif., June 06, 2024 (GLOBE NEWSWIRE) -- Robinhood Markets, Inc.
("Robinhood") has entered into an agreement to acquire Bitstamp Ltd.
("Bitstamp"), a global cryptocurrency exchange. Bitstamp was founded in 2011 and
has offices in Luxembourg, the UK, Slovenia, Singapore, and the US.
Acquiring a global exchange will significantly accelerate Robinhood Crypto's
expansion worldwide. Bitstamp holds over 50 active licenses and registrations
globally and will bring in customers across the EU, UK, US and Asia to
Robinhood.
This acquisition will introduce Robinhood's first institutional business.
Bitstamp has been trusted by its institutional clients for reliable trade
execution, deep order books and industry-leading API connectivity. With
Bitstamp's other institutional offerings like white label solution Bitstamp-as-
a-service, institutional lending, and staking, Robinhood will enter the space
with active and established relationships, infrastructure and industry-leading
products. Bitstamp's core spot exchange, with over 85 tradable assets, and
products like staking and lending, will enhance Robinhood's Crypto offering.
"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. By seamlessly coupling customer experience with safety
across geographies, the Bitstamp team has established one of the strongest
reputations across retail and institutional crypto investors," 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."
"As the world's longest running cryptocurrency exchange, Bitstamp is known as
one of the most-trusted and transparent crypto platforms worldwide," said JB
Graftieaux, CEO of Bitstamp. "Bringing Bitstamp's platform and expertise into
Robinhood's ecosystem will give users an enhanced trading experience with a
continuing commitment to compliance, security, and customer-centricity."
Bitstamp's team will join forces with Robinhood, fostering collaboration,
innovation, and knowledge sharing across continents. Robinhood and Bitstamp
customers can expect the same level of service, security and reliability and as
we move forward, we are committed to maintaining transparency throughout this
process.
Robinhood expects the final deal consideration to be approximately $200 million
in cash, subject to customary purchase price adjustments. The acquisition is
subject to customary closing conditions, including regulatory approvals, and is
expected to close in the first half of 2025. Barclays Capital Inc. served as
exclusive financial advisor to Robinhood. Galaxy Digital Partners LLC served as
exclusive financial advisor to Bitstamp.
Cautionary Note Regarding Forward-Looking Statements
This blog post contains forward-looking statements, including with respect to
our agreement to acquire Bitstamp and our current expectations with respect to
final deal consideration and timing. Our forward-looking statements are subject
to a number of known and unknown risks, uncertainties, assumptions, and other
factors that may cause our actual future results, performance, or achievements
to differ materially from any future results expressed or implied in this blog
post. Factors that contribute to the uncertain nature of our forward-looking
statements include, among others, the risk that changes in business, economic,
or political conditions that impact the global financial markets, or a systemic
market event, might harm our business; the difficulty of complying with an
extensive, complex, and changing regulatory environment and the need to adjust
our business model in response to new or modified laws and regulations; and the
volatility of cryptocurrency prices and trading volumes. Because some of these
risks and uncertainties cannot be predicted or quantified and some are beyond
our control, you should not rely on our forward-looking statements as
predictions of future events. More information about potential risks and
uncertainties that could affect our business and financial results is included
in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended
March 31, 2024, as well as our other filings with the SEC, which are available
on the SEC's web site at www.sec.gov. Except as otherwise noted, all forward-
looking statements are made as of the date of this blog post and are based on
information and estimates available to us at this time. Except as required by
law, we assume no obligation to update any of the statements in this blog post
whether as a result of any new information, future events, changed
circumstances, or otherwise. You should read this blog post with the
understanding that our actual future results, performance, events, and
circumstances might be materially different from what we expect.
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