Robinhood stock leapt Thursday after the mobile broker announced plans to buy cryptocurrency exchange Bitstamp.
Robinhood on Thursday said it entered an agreement to acquire global crypto exchange Bitstamp for roughly $200 million in cash. London-based Bitstamp holds over 50 active licenses and registrations globally. It would mark Robinhood's first institutional business, Robinhood said.
Bitstamp provides trade execution, order books, API connectivity, lending and staking services for institutional clients. Bitstamp's core spot exchange has over 85 tradable assets, as well as staking and lending products for retail investors.
The acquisition should "significantly accelerate" the expansion of Robinhood Crypto and bring in customers across the European Union, U.K., U.S. and Asia, Robinhood wrote in the announcement. Robinhood expects to complete the deal in the first half of 2025, subject to regulatory approval and customary closing conditions.
Barclays served as the financial advisor to Robinhood on the deal. Galaxy Digital was the financial advisor to Bitstamp.
Robinhood Stock Performance
HOOD stock jumped 6.5% Thursday after the announcement. Shares extended above a buy zone for a cup base. Robinhood stock broke out above the 20.55 buy point on May 20.
HOOD stock has soared 80.3% this year amid rebounding cryptocurrency prices, bitcoin ETF launches and the recent resurgence of meme stocks.
Elsewhere, crypto exchange Coinbase swung 2.3% higher Thursday. COIN stock was actionable on Wednesday after clearing short-term highs on a bounce off its 50-day moving average.
Coinbase is working up the right side of a 10-week cup base with a 283.48 buy point. COIN stock leapt 47.8% year to date.
Meanwhile, bitcoin eased back to $70,600 Thursday afternoon after trending toward $71,200 in the morning. The cryptocurrency on Tuesday climbed back above $70,000 after hovering below that level since late May. Bitcoin spiked 68% this year and hit a record high of $73,798 on March 14.
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