Shares of Robinhood, the financial services app that offers both stock and crypto trading, surged to an all-time high on Wednesday following the completion of the company’s acquisition of crypto exchange Bitstamp earlier this week.
Robinhood’s stock jumped 13% this week, climbing from $66.05 on Monday morning to a high of $74.42 in pre-market trading on Wednesday. However, shares in the company fell by 4% after the market opened on Wednesday, and are hovering at around $72.
The upswing follows an announcement from Robinhood on Monday that the company had completed its $200 million acquisition of Bitstamp, the longest-running global crypto exchange. The all-cash deal was first made public last June.
Bitstamp holds 50 crypto licenses and registrations—authorizations issued by a government that allow a company to legally operate within the finance and crypto spaces—throughout the U.S., Europe, the U.K., and Asia. With Bitstamp’s widespread regulatory compliance, Robinhood is hoping to expand into the international digital asset market.
The acquisition also helps Robinhood expand its customer base to include institutional clients, like banks or hedge funds, that make up a majority of Bitstamp’s exchange volume. Bitstamp has 500,000 retail investors and approximately 5,000 institutional investors, according to a statement from Robinhood.
“Through this strategic combination, we are better positioned to expand our footprint outside of the U.S. and welcome institutional customers to Robinhood,” general manager of Robinhood Crypto, Johann Kerbrat, said in a statement, when the deal was initially announced.
Crypto trading on Robinhood, which was introduced in 2018, has grown to drive a large portion of the company’s revenue. In Q4 of 2024, Robinhood raked in a record $1 billion in revenue, boosted by a 500% bump in revenue from crypto transactions between October and December. Last quarter, despite a slight pullback in crypto trading on the platform, revenue from crypto-related transactions made up 27% of Robinhood’s overall revenue.
However, Robinhood CEO Vlad Tenev noted in a recent earnings call that the company is looking for ways to diversify its revenue streams away from crypto to protect its profits from the volatility associated with the asset class.
“It’s going to go up and down in terms of trading volumes,” Tenev said. “We’re diversifying the business outside of the crypto business, which will make us less reliant on crypto transaction volumes.”
The closure of the Bitstamp deal comes as the crypto market recovers from a historic sell-off this year, prompted by President Donald Trump’s on-again off-again tariff policy. The entire crypto market has managed to claw back some of its previous gains over the past few weeks, reclaiming 36% of its market cap since hitting a yearly low of $2.42 trillion in April.
