Robinhood to Acquire Crypto Exchange Bitstamp in $200 Million Deal
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Robinhood to Acquire Crypto Exchange Bitstamp in $200 Million Deal

Robinhood Markets (NASDAQ: HOOD) has agreed to acquire cryptocurrency exchange Bitstamp for $200 million in cash, marking its largest deal to date.
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Robinhood Markets (NASDAQ: HOOD), a prominent player in the retail trading space, has announced its largest acquisition to date with the agreement to purchase cryptocurrency exchange Bitstamp for approximately $200 million in cash. The deal, expected to close in the first half of 2025, marks a significant step in Robinhood’s strategy to expand its presence in the digital assets market.

Bitstamp Acquisition Will Enhance Robinhood Crypto, International Presence

Founded in 2011, Bitstamp has established itself as a leading cryptocurrency exchange, holding 50 active licenses and registrations globally.

The platform, popular in Europe and Asia, offers over 85 tradable assets, including staking and lending products. The acquisition is set to enhance Robinhood Crypto and establish Bitstamp as Robinhood’s first institutional business, positioning the company to compete directly with major industry players like Binance and Coinbase.

The acquisition comes amidst rapid growth in Robinhood’s crypto business, significantly contributing to its first-quarter earnings. Despite facing regulatory challenges in the U.S., including a ‘Wells’ notice from the SEC signaling potential enforcement action, Robinhood remains committed to communicating with regulators as it expands its crypto operations.

Johann Kerbrat, Vice President and General Manager of Robinhood Crypto, emphasized the company’s early stages in the EU and plans for further global expansion, with the Bitstamp acquisition seen as a key accelerator.

Robinhood Stock Price Update

As of the previous day’s market close, Robinhood Markets, Inc. (HOOD) stock price stood at $21.57, up by $0.79 (+3.80%), with premarket trading indicating a price of $22.15, up by $0.58 (+2.69%) as of 7:47 AM EDT.

The company boasts a market capitalization of $18.96 billion and has experienced significant trading volume, reflecting strong investor interest. Over the past year, the stock has ranged from a low to a high price, showcasing considerable fluctuation.

Robinhood’s stock has delivered impressive returns, with a year-to-date return of +69.31% and a 1-year return of +130.94%. However, the company has faced challenges in earlier years, as evidenced by its 3-year and 5-year returns of -43.24%.

Analyst price targets for the stock range from a low of $16.00 to a high of $30.00, with an average target of around $21.14, close to the current trading price.

The company’s financial performance is characterized by a high PE ratio (TTM) of 154.07, an EPS (TTM) of 0.14, and revenue (TTM) of $2.04 billion. Robinhood has reported a net income of $127 million, a profit margin of 6.22%, a return on assets of 0.34%, and a return on equity of 1.82%.

Do you think this is positive for cryptocurrency in general? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.