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Robinhood positioned well against Coinbase, Kraken after Bitstamp deal: Bernstein

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Trading Platform Robinhood Fined 65 Million By Securities And Exchange Commission

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Robinhood Markets’ (NASDAQ:HOOD) recently announced acquisition of cryptocurrency exchange Bitstamp is set to expand its crypto business globally and positions the trading platform well against its exchange competitors, such as Coinbase (COIN) and Kraken, Bernstein analyst Gautam Chhugani wrote in a Friday note to clients.

The final deal consideration is expected to be ~$200M in cash, and the transaction is expected to be completed in H1 2025.

The deal will enable Robinhood (HOOD) to “offer markets in the long tail of tokens.” Robinhood offers 15 tokens to retail investors in the U.S. and more than 30 tokens in Europe, while Bitstamp lists over 85 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,” said Chhugani, who has an Outperform rate on HOOD.

In addition to a wider range of tokens, the deal potentially allows Robinhood (HOOD) to offer more crypto products to a more institutional client base, he noted.

HOOD edged down 0.4% minutes after the opening bell.

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