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Nidhi Kolhapur
Nidhi Kolhapur
Author
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Jun 06, 2024 11:32 UTC
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BREAKING: Robinhood to Acquire Crypto Exchange ‘Bitstamp’ for $200M
Robinhood is acquiring Bitstamp, a global crypto exchange, for $200 million.
Bitstamp is a well-established exchange with a good reputation and licenses in many countries.
Robinhood hopes this acquisition will increase its user base and revenue, especially during the current crypto bull market.
Robinhood Markets Inc. (NASDAQ: HOOD) just made a splash in the crypto world! In a move that could shake up the industry, Robinhood has struck a deal to acquire Bitstamp Ltd, a veteran cryptocurrency exchange known for its security and features. This $200 million acquisition is a big bet on the future of crypto, but can Robinhood pull it off?
Expanding Globally: Robinhood’s Big Step
Robinhood’s decision to acquire Bitstamp marks a key moment in its expansion beyond the US market. Bitstamp is already regulated in 50 jurisdictions, particularly in the United Kingdom, Europe, and Asia, providing a strong foundation for Robinhood’s international ambitions.
“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,”
Johann Kerbrat, General Manager of Robinhood Crypto
Understanding the Growing Demand
This acquisition comes after Ripple Labs acquired an undisclosed stake in Bitstamp from Pantera Capital, highlighting the increasing interest in digital assets among retail traders. With a market cap of about $20 billion, Robinhood’s entry into the crypto market reinforces the mainstream adoption of cryptocurrencies.
Following the announcement, HOOD shares saw a 3 percent increase in pre-market trading, reaching around $22.14, signaling investor confidence in Robinhood’s strategic move.
Despite previous regulatory challenges, including scrutiny from the United States Securities and Exchange Commission (SEC), Robinhood’s acquisition of Bitstamp presents a proactive approach to navigating regulatory complexities.
“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,”
JB Graftieaux, CEO of Bitstamp
Also Read : A Close Look Into Donald Trump’s $32 Million Crypto Portfolio
Is Robinhood’s crypto play a winning bet? Share your thoughts.
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