Bitstamp bought by Robinhood for $200 million

Thursday, June 6, 2024

Launched in 2011, Bitstamp was one of the last major European platforms. Its acquisition has sparked many comments, notably a few months before the implementation of the MiCA regulation.

A thunderbolt in the European crypto sky. Bitstamp, which is one of the oldest exchange platforms in Europe, has been bought by Robinhood.

In a statement, the American broker explained that this acquisition would allow it to accelerate "its development in Europe". According to the WSJ, Robinhood would have spent 200 million dollars.

Founded in 2011, Bitstamp was the last heavyweight platform in Europe. The company claims nearly 4 million customers, a good part of them in Europe. Above all, the company has become a must for European institutional players (banks, brokers, insurers, etc.) keen to get into crypto.

Bitstamp allows them to use its white label technology to offer the purchase of crypto to their customers (Revolut uses Bitstamp for example), or traders and market makers to use its platform for their own account.

"Today, half of our revenue comes from corporate clients," explained Jean-Baptiste Graftieaux in February in an interview with The Big Whale.

But apparently the dynamism of Bitstamp was not enough and the company is thus bought by an American player. "With this partnership, we are going to write a new page in the history of Bitstamp," explained Jean-Baptiste Graftieaux on LinkedIn, without necessarily convincing everyone.

Anger and... MiCA

This operation indeed raises many comments. Some focus on the valuation - 200 million dollars - which seems relatively low. Others focus on the interest of this operation. "It's a huge waste," says an investor.

But everyone agrees on the impact of the MiCA regulation which will come into effect at the end of the year (with a transition period of 18 months). "We have been explaining for years that we risk ending up with a European regulatory framework, but without a European player. Here we are," says a European broker.

Also read - Alexandre Stachtchenko (Paymium): “Having a French exchange platform is a matter of sovereignty

This analysis is not investment advice. It has been prepared without taking into account your personal situation, particularly your financial situation, risk profile, and investment objectives.

Before investing in any product, investors should fully understand the risks involved and consult their own legal, tax, financial, and accounting advisors.

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