Robinhood to Buy Crypto Exchange Bitstamp for $200 Million

Robinhood has agreed to buy Bitstamp, one of the oldest crypto exchanges, for about $200 million in cash to build an institutional crypto business, the retail brokerage app announced Thursday.

Last month, Robinhood disclosed that the Securities and Exchange Commission is preparing to sue its crypto unit for alleged violations of securities laws. The planned acquisition shows that Robinhood is still eager to expand its crypto business. Bitstamp, founded in 2011 with offices in Luxembourg, the UK and the U.S., offers crypto trading, institutional lending and staking.

Bitstamp USA is also part of the acquisition, a spokesperson said. Barclays advised Robinhood, and Galaxy Digital advised Bitstamp.