From Nasdaq.: 2024-06-07 07:35:00

Robinhood Markets, Inc. announces acquisition of Bitstamp Ltd., a major cryptocurrency exchange, for approximately $200 million. The deal will help Robinhood expand globally and enter the institutional market, competing with major exchanges like Binance and Coinbase. Shares of HOOD surge 6.5% in response to the news.

Robinhood’s acquisition of Bitstamp will allow it to expand its cryptocurrency division, Robinhood Crypto, into new international markets like Europe, the U.K., the U.S., and Asia. The move aligns with Robinhood’s goal to become a comprehensive financial services provider, offering services like trading app access to more than 6,000 global companies listed on U.S. markets.

Despite regulatory hurdles in the U.S., Robinhood remains committed to its global expansion in the crypto market. The company received a Wells notice from the SEC in May regarding the tokens traded on its platform, reflecting the complex regulatory landscape for crypto firms. Robinhood’s top-line growth has been supported by cryptocurrency transactions, with revenues surging 232% year over year to $126 million in Q1 2024.

Last year, Robinhood acquired X1 Inc., a platform offering a no-fee credit card, and this March unveiled its first-ever credit card. The company’s shares have jumped 80.4% this year, significantly outperforming industry growth. Similarly, Piper Sandler, another company in the same space, has seen its shares rally 25.6% over the past six months, with earnings estimates for 2024 revised upward by 5.8% in the past two months.

Piper Sandler sports a Zacks Rank of 1 (Strong Buy), with significant growth potential. This Zacks Rank #1 (Strong Buy) company is showing promising growth prospects, with its earnings estimates for 2024 being revised upward by 5.8% in the past two months. Shares have rallied 25.6% over the past six months, making it an attractive investment option.

Read more at Nasdaq: Robinhood (HOOD) to Buy Bitstamp, Accelerate Global Expansion