Robinhood Markets announced on Thursday its agreement to acquire crypto exchange Bitstamp for approximately $200 million in cash, marking its largest-ever deal and accelerating its expansion into digital assets. Robinhood's shares rose 3.4% before the opening bell following the announcement.

The acquisition positions Robinhood in direct competition with industry giants like Binance and Coinbase, as Bitstamp, founded in 2011, holds 50 active licenses and registrations globally. Bitstamp's core spot exchange, particularly popular in Europe and Asia, offers over 85 tradable assets, and Robinhood expects the deal to fuel the growth of its own crypto platform.

Johann Kerbrat, vice president and general manager of Robinhood Crypto, expressed excitement about the acquisition, emphasizing the company's early presence in the EU and its plans for global expansion. The deal is anticipated to be finalized in the first half of 2025.

While Robinhood's crypto business has experienced significant growth, it has also encountered regulatory challenges in the United States. The company intends to maintain dialogue with regulators as it proceeds with the acquisition. In May, Robinhood's crypto business contributed to a substantial first-quarter earnings beat, but the company also disclosed receiving a Wells notice from the U.S. Securities and Exchange Commission (SEC) regarding tokens traded on its platform. A Wells notice typically precedes enforcement action from the SEC.

The SEC has contended that crypto tokens should be classified as securities and subject to registration rules, a stance that has drawn criticism from crypto firms. Despite regulatory hurdles, Robinhood's stock has surged 69% this year, driven by its focus on "profitable growth." Analysts anticipate further gains for the company amid a resurgence in retail trading and increasing adoption of cryptocurrencies.

Barclays Capital and Galaxy Digital served as the exclusive financial advisers to Robinhood and Bitstamp, respectively, in the acquisition deal.