Robinhood Markets revealed Thursday it will purchase Bitstamp.
In a press release, the company said it expects to pay about $200 million in cash as part of the deal to become the owner of the cryptocurrency exchange. It is aiming to complete the acquisition sometime in the first six months of next year.
The deal comes as Robinhood works to boost its international footprint and expand into institutional business offerings.
CLICK HERE TO READ MORE ON FOX BUSINESS
The company highlighted Bitstamp’s more than 50 active licenses and registrations around the world and to its base of customers in Europe, the U.S. and Asia, saying it will “significantly accelerate” global growth of its crypto arm.
Robinhood has experienced major gains in the sector, reporting a 224% year-over-year increase in crypto notional trading volumes in the first quarter. Its Robinhood Crypto unit is facing a Wells Notice from the Securities and Exchange Commission, according to a regulatory filing.
CRYPTO INDUSTRY FIGHTS BACK AGAINST GOVERNMENT CRACKDOWN
Vlad Tenev, the CEO and co-founder of Robinhood, said Thursday in an X post that the company “believe[s] crypto will fundamentally reorganize the financial system, and we’re acquiring @Bitstamp to accelerate our vision.”
The company also said it will make its entrance into institutional business “with active and established relationships, infrastructure and industry-leading products” thanks to Bitstamp and its array of institutional services like lending and staking.
Robinhood has previously identified “winning the active trader market,” “increasing wallet share” and expanding outside the U.S. as key areas for future growth.
Roughly 13.7 million active users utilized Robinhood on a monthly basis in the first quarter.
Original article source: Robinhood expands crypto efforts with $200M purchase of Bitstamp