Robinhood Acquires Bitstamp for $200 Million: Expanding Crypto Business and Welcoming Institutional Customers

Luxembourg City, Luxembourg, Luxembourg Luxembourg
Acquisition will help grow Robinhood's cryptocurrency business and expand footprint outside of US
Bitstamp brings customers from Europe, Asia, and US to Robinhood's platform
Deal expected to close in first half of next year and subject to regulatory approval
Robinhood acquires Bitstamp for approximately $200 million
Robinhood looking to compete with larger crypto trading firms like Binance and Coinbase
Robinhood reported a profit of $157 million in Q1 2024, driven by high crypto trading volumes
Robinhood Acquires Bitstamp for $200 Million: Expanding Crypto Business and Welcoming Institutional Customers

Robinhood, a popular online trading platform, announced on June 6, 2024, that it will acquire European cryptocurrency exchange Bitstamp for approximately $200 million. The deal is expected to close in the first half of next year and is subject to regulatory approval.

Bitstamp was founded in 2011 and has over 50 active licenses and registrations across the globe, bringing customers from Europe, Asia, and the US to Robinhood's platform. The acquisition will help grow Robinhood's cryptocurrency business, which has surged in recent quarters. The expansion comes as Robinhood's existing crypto business has drawn scrutiny from regulators.

Robinhood Crypto General Manager Johann Kerbrat stated that the acquisition of Bitstamp is a major step in growing the company's crypto business and that Bitstamp's highly trusted and long-standing global exchange has shown resilience through market cycles. The deal will allow Robinhood to expand its footprint outside of the US and welcome institutional customers to its platform.

The acquisition marks Robinhood's first institutional business, as it looks to compete with larger crypto trading firms like Binance and Coinbase. Bitstamp CEO JB Graftieaux stated that 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.

Robinhood reported a profit of $157 million or 18 cents per share for the first quarter of 2024, driven in part by high crypto trading volumes. The company's revenue from its crypto business more than tripled in the first quarter compared to a year earlier to $126 million.


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Confidence

96%

Doubts
  • Is the regulatory approval a certainty?
  • What is the exact number of Bitstamp's active licenses and registrations?

Sources

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Robinhood acquires global crypto exchange Bitstamp for $200M

TechCrunch Paul Sawers Thursday, 06 June 2024 12:46
  • Unique Points
    • Robinhood is acquiring crypto exchange Bitstamp for approximately $200 million.
    • Bitstamp was founded in Europe in 2011.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    No ad hominem fallacies found. However, there are some exaggerations and potentially misleading statements. The author claims that 'Robinhood is diving deeper into the cryptocurrency realm' when it has been offering crypto trading services for years now. Also, the statement 'the company saw its initial good fortunes crumble as the world (and investor sentiment) returned to normality' is a simplistic depiction of Robinhood's financial performance and ignores other factors that might have contributed to its valuation decline.
    • ]Robinhood is diving deeper into the cryptocurrency realm with the acquisition of crypto exchange Bitstamp.[
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

99%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Robinhood to acquire Bitstamp crypto exchange in $200 million deal

CBS News Site: https://www.cbsnews.com/articles/about-us/ Megan Cerullo Thursday, 06 June 2024 15:52
  • Unique Points
    • Robinhood to acquire Bitstamp crypto exchange for approximately $200 million.
    • Deal marks Robinhood’s biggest push into digital assets industry and makes it a competitor to larger crypto trading firms like Binance and Coinbase.
    • Acquisition will allow Robinhood to grow its footprint internationally and acquire institutional customers.
    • Bitstamp CEO JB Graftieaux stated that 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.
    • Robinhood reported a profit of $157 million or 18 cents per share for the first quarter, driven in part by high crypto trading volumes.
  • Accuracy
    • Transaction expected to close in the first half of 2025.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Robinhood Buys Bitstamp To Expand Crypto, International Business

Investopedia Thursday, 06 June 2024 15:53
  • Unique Points
    • Robinhood agreed to purchase European cryptocurrency exchange Bitstamp for approximately $200 million.
    • Bitstamp has over 50 active licenses and registrations across the globe, bringing customers from Europe, Asia, and the US to Robinhood’s platform.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Robinhood buys crypto exchange Bitstamp in surprise $200 million deal

Fortune Media Inc. Jeff John Thursday, 06 June 2024 00:00
  • Unique Points
    • Robinhood acquired Bitstamp, an old cryptocurrency exchange, for approximately $200 million in cash.
    • Bitstamp was founded in 2011 and has customers in Europe, UK, Asia, and the US. It ranks 16th among cryptocurrency exchanges by trading volume.
    • Robinhood will be able to source crypto from its own exchange after acquiring Bitstamp and potentially invite customers to trade there.
    • Bitstamp offers more digital tokens and lending/staking services compared to Robinhood.
  • Accuracy
    • The acquisition is expected to close in the first half of 2025 and will help Robinhood expand its presence in overseas markets.
    • Robinhood had been rumored to be an acquisition target due to its financial struggles in 2023, but it bounced back with record earnings and new services in 2024.
    • The crypto markets have seen a huge upswing since the start of the year, leading to a three-fold increase in crypto revenue for Robinhood during Q1.
  • Deception (80%)
    The article contains some selective reporting and editorializing. The author highlights Robinhood's acquisition of Bitstamp as a surprise, but fails to mention that reports emerged in 2023 about Bitstamp being in talks to raise funds for expansion. This omission creates a misleading impression that the deal came out of nowhere. Additionally, the author makes editorializing statements such as 'despite having four to five million customers, Bitstamp now ranks 16th in trading volume among cryptocurrency exchanges.' and 'The acquisition comes as a surprise since there had been no reports Bitstamp was up for sale.' These statements are not factual and add an emotional tone to the article.
    • despite having four to five million customers, Bitstamp now ranks 16th in trading volume among cryptocurrency exchanges.
    • The acquisition comes as a surprise since there had been no reports Bitstamp was up for sale.
  • Fallacies (95%)
    The article contains some instances of appeals to authority and inflammatory rhetoric, but no formal or dichotomous fallacies are present. The author quotes several individuals and mentions their positions or expertise in the industry. These quotes do not constitute fallacies as they accurately represent the speakers' statements. The author also uses descriptive language to convey the significance of certain events and trends in the crypto industry, which can be considered inflammatory but does not lead to any logical errors.
    • ][Robinhood Crypto’s General Manager, Johann Kerbrat], pointed out that Bitstamp has 50 active licenses across the globe, and that the exchange also does a robust trade with institutions.[
    • The acquisition comes as a surprise since there had been no reports Bitstamp was up for sale, and as Robinhood is bouncing back from a brutal 2023 that saw the price of its shares fall as low as $7.
    • Robinhood’s acquisition of Bitstamp coincides with a huge upswing in the crypto markets that has seen the price of Bitcoin climb over 60% since the start of the year, and the company post a three-fold increase in crypto revenue during the first quarter.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Robinhood buying crytocurrency exchange Bitstamp for about $200 million

ABC NEWS SITE NAMES Name: ABC News Site Names URL: https://abcnews.go.com/Politics/us-officially-blames-iran_106834435 ABC News Thursday, 06 June 2024 15:54
  • Unique Points
    • Robinhood Markets Inc. is buying cryptocurrency exchange Bitstamp for approximately $200 million.
    • Bitstamp was founded in 2011 and has offices in Luxembourg, the UK, Slovenia, Singapore, and the US.
    • Bitstamp has more than 50 active licenses and registrations worldwide and customers across the European Union, United Kingdom, United States and Asia.
    • This will be Robinhood’s first institutional business.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication