LUXEMBOURG – Robinhood (NASDAQ 🙂 Markets, Inc., the popular trading platform, has announced an agreement to acquire Bitstamp Ltd., one of the longest-standing global cryptocurrency exchanges. This move is set to facilitate Robinhood's expansion into the markets international and introduce its first institutional commercial offers.
The acquisition, which is expected to close in the first half of 2025, remains subject to customary closing conditions and regulatory approvals. The deal is expected to be valued at approximately $200 million in cash, with the possibility of customary adjustments to the purchase price.
Founded in 2011, Bitstamp has established a strong presence with offices in Luxembourg, the United Kingdom, Slovenia, Singapore, and the United States. The exchange has over 50 active licenses and registrations worldwide and serves a diverse customer base spanning the EU, UK, US and Asia. Bitstamp's robust institutional services, including its white-label Bitstamp-as-a-service solution, institutional lending, and staking, will significantly enhance Robinhood's cryptocurrency offerings.
Johann Kerbrat, CEO of Robinhood Crypto, emphasized the importance of the acquisition, stating that Bitstamp's trusted and resilient global exchange complements Robinhood's commitment to user experience and security across multiple geographies. JB Graftieaux, CEO of Bitstamp, echoed this sentiment and highlighted the synergies that will result from integrating Bitstamp's platform and expertise into the Robinhood ecosystem.
The strategic combination will see the Bitstamp team join Robinhood, promising continued innovation and knowledge sharing. Both companies have assured their customers that the high standards of service, safety and reliability they expect will remain unchanged during the transition.
Barclays Capital Inc. acted as exclusive financial advisor to Robinhood for the transaction, while Galaxy Digital Partners LLC advised Bitstamp.
This acquisition marks a major milestone for Robinhood as it looks to expand its cryptocurrency business and establish a foothold in the institutional cryptocurrency space. The information in this article is based on a press release.
In other recent news, Robinhood Markets has announced plans to buy back up to $1 billion worth of stock over the next two to three years, starting in the third quarter. This strategic initiative by the firm demonstrates its confidence in its own value. Keefe, Bruyette & Woods, an analyst firm, maintained a market perform rating on Robinhood, highlighting the potential for a slight increase in earnings per share (EPS) due to the buyback program.
In other developments, Cathie Wood's ARK ETFs reported a reduction in their holdings of Robinhood shares, while increasing their holdings in UiPath (NYSE: Inc and Amgen Inc. (NASDAQ:). Robinhood's divestment suggests a strategic shift as ARK shows growing interest in the biotech and healthcare sectors.
InvestingPro Insights
As Robinhood Markets, Inc. (HOOD) prepares to enhance its cryptocurrency services through the strategic acquisition of Bitstamp Ltd., investors are closely watching the company's financial performance and market position. According to real-time data from InvestingPro, Robinhood has a strong market capitalization of $18.96 billion, underscoring its significant presence in the trading platform sector.
Despite the challenges often associated with high-growth companies, Robinhood has demonstrated impressive revenue growth in the trailing twelve months to the first quarter of 2024, with a notable increase of 36.13%. This upward trend is further evidenced by the company's quarterly revenue growth of 40.14% for the first quarter of 2024, indicating a good start to the year. Furthermore, Robinhood has maintained an impressive gross profit margin of 85.01%, demonstrating its ability to efficiently manage the cost of its services and maintain profitability.
Investors considering Robinhood stock are advised to pay attention to advice from InvestingPro that highlights the company's expected net income growth this year and positive reviews from three analysts for the coming period. These insights suggest a favorable outlook for Robinhood's financial performance, which could be further boosted by the expected synergies from the Bitstamp acquisition.
For those looking for a deeper analysis of Robinhood and additional insights, InvestingPro offers a comprehensive list of tips, including pricing the company with a high P/E ratio relative to near-term earnings growth and volatility. its price movements. With 12 more tips available on InvestingPro, investors can gain a more nuanced understanding of Robinhood market dynamics. To access this valuable information, use the coupon code FORECASTS24 to get an additional 10% discount on an annual or bi-annual Pro and Pro+ subscription at
As Robinhood continues to navigate the competitive landscape of financial trading platforms and the evolving world of cryptocurrencies, these InvestingPro Insights offer a snapshot of the company's current financial health and market potential.
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