Share this article
Robinhood’s Bitstamp Deal Is Strategic and Brings Added Institutional Exposure: Bernstein
The acquisition will potentially allow the trading platform to offer a wider range of crypto products to a more institutional client base, the report said.
Updated Jun 7, 2024, 1:09 p.m. Published Jun 7, 2024, 12:02 p.m.
Make us preferred on Google
- The Bitstamp acquisition is a strategic move by Robinhood to expand its crypto business, the report said.
- Bernstein said that by acquiring an exchange the trading platform can offer markets in many more tokens.
- JMP said it doesn't expect material accretion from the deal.
Robinhood’s (HOOD) acquisition of Bitstamp is a strategic move by the trading platform to expand its crypto business and positions the company well against competitors such as Coinbase (COIN) and Kraken, broker Bernstein said in a research report on Friday.
The broker notes that Bitstamp, as one of the oldest exchanges that offers crypto, Robinhood has “stood the test of time over multiple cycles.”
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Robinhood offers 15 cryptocurrencies to retail investors in the U.S. and more than 30 tokens in Europe, whereas Bitstamp lists over 85 tokens, the report said. By acquiring an exchange the trading platform can offer markets in a lot more tokens.
“With a full exchange, HOOD gets access to global liquidity, and thus can offer the liquidity to its own broker platform, potentially improving its economics,” analysts Gautam Chhugani and Mahika Sapra wrote.
Exchanges offer a wide range of services such as staking, stablecoins, trading, custody and prime broking, the note said. The acquisition of Bitstamp potentially allows Robinhood to offer a wider range of crypto products to a more institutional client base. Bernstein has an outperform rating on Robinhood stock with a $30 price target. The shares were little changed in early trading on Friday at around $23.
Broker JMP said the acquisition of Bitstamp will “drive opportunities to broaden Robinhood’s participation in the evolving crypto value chain,” in a report on Thursday. Owning an exchange will give Robinhood opportunities to connect more deeply into the crypto ecosystem and could allow the platform to get more involved in the tokenization of assets and securities, the report said.
The acquisition will give Robinhood more exposure to institutional clients and will accelerate the company’s buildout in Europe, the report added.
As Bitstamp is marginally profitable at best, JMP said it does not expect material accretion from the deal. JMP has an outperform rating on the stock with a $30 price target.
Read more: Robinhood Delivers Big Earnings Beat Driven by Booming Crypto Trading: Analysts
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Kevin O'Leary says power is now more valuable than bitcoin
"Shark Tank" investor Kevin O'Leary is pivoting his crypto strategy from tokens to energy infrastructure, declaring that power generation is now the real prize.
What to know:
The big pivot: O'Leary has moved capital away from smaller tokens to focus on physical infrastructure like land, power, and copper.
- He believes power is now "more valuable than bitcoin" and has secured significant land deals with stranded natural gas in Alberta and the U.S.
- His thesis is driven by the massive energy needs of bitcoin mining and AI, noting that entities controlling power can serve either market.
- He advises investors to look at copper and gold, noting copper prices have nearly quadrupled for his projects in the last 18 months.
- He views Robinhood and Coinbase as "no-brainer" infrastructure investments, having reallocated capital from altcoins into these platforms. He describes Robinhood as the premier bridge for managing equity and crypto in one portfolio, while labeling Coinbase the "de facto standard" for businesses to manage stablecoin transactions and vendor payments once regulatory acts pass.
Top Stories
