Robinhood buys out Bitstamp crypto exchange

Despite the challenges it faces from mainstream politics and regulation, Robinhood soldiers on with its plans to expand into the crypto market

The latest such move comes with the company’s decision to buy out Bitstamp, a crypto exchange, which marks Robinhood’s latest forays into the vertical at a time when the company has been served with a Wells Notice from the US Securities and Exchange Commission (SEC), the designated villain in all maters that have to do with trading, crypto, and fintech.

Yet, the purchase makes strategic sense for Robinhood’s business which has continued to soar. In terms of first-quarter gains in 2024 alone, Robinhood’s crypto portfolio brought in 20%.

“This acquisition instantly expands global reach to ensure participation regardless of U.S. actions,” a statement by Architect Partners, a bank, said on Friday. Architect’s report is also fairly certain that Bitstamp makes for a strong core acquisition for the company’s business. There are “few publicly traded crypto-influenced companies that will be able to serve institutions as they come into the digital asset space,” the report further explained.

Now, this acquisition will further strengthen Robinhood’s institutional offering, ensconcing the company into the sector, but also landing legitimacy to the crypto sector, as it would effectively be one of the very few publicly-traded platforms with huge exposure to cryptocurrencies, where the business exceeds over a quarter of revenue operations.

Robinhood is right to move for Bitstamp as well, as the company is now looking to scoop up the asset on the cheap. Previously, Bitstamp was valued at $500 million during its peak, but the exchange’s value has declined to what has been deemed to be $200 million in the Robinhood’s move.

With a few challenges to address on its own, Robinhood has not been intimidated by its recent brush with SEC, and continues to move boldly into the sector.

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Written by Barney


Barney is co-founder of When not at work he can usually be found behind a Nikon. He's won numerous international competitions for his photography and volunteers as a content creator for aid organisations in Africa.

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