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Swyftx Acquires Caleb & Brown
Swyftx Acquires Caleb & Brown

Transaction Overview

On July 1st, 2025, Swyftx, one of the largest Australian cryptocurrency exchanges, announced a definitive agreement to acquire Caleb & Brown, a high-net-worth-focused crypto brokerage, for an undisclosed amount.

 

Target: Caleb & Brown

Caleb and Brown is a Melbourne-based, high net worth focused crypto brokerage that specializes in personalized trading services across the digital asset landscape. Caleb & Brown focuses on the relationship model used successfully across traditional  financial services – every client that comes onto their platform gets assigned a broker to assist them in executing trades  and handling all customer service needs. Caleb and Brown’s core services include 1) Brokerage Services, which provide personalized 24/7 trading support for 250+ digital assets, 2) an OTC Desk, which provides high volume trading solutions with deep liquidity and competitive pricing, 3) the Caleb and Brown Asset Management, an actively managed crypto asset fund for accredited investor, 4) crypto custody. 

 

The business has more than AUD $2 billion of digital assets under custody and was founded by Rupert Hackett and Dr. Prash Puspanathan in 2016. C&B is led by CEO Jackson Zeng and has 64 team members across both Australia and the US. Caleb & Brown has not raised any outside capital. 

 

Architect Partners’ Observations

Architect Partners acted as the exclusive financial advisor to Caleb & Brown. 

 

Swyftx’s acquisition of Caleb & Brown marks the largest acquisition targeting high net worth crypto investors. It also reflects two important shifts in the evolution of crypto exchanges, particularly within the ANZ region.

 

First, high-net-worth client service is becoming a strategic differentiator. Exchanges are beginning to recognize that personalized brokerage and deep client relationships offer a competitive advantage while greatly reducing attrition. This is a model that high-net-worth clients are accustomed to in their financial lives. Caleb & Brown’s approach, which assigns a dedicated broker to every client, stands apart from the high-volume, low-touch models that dominate the market. Swyftx gains access not only to clients but also to an established business model that emphasizes trust, service, and retention in a way few crypto exchanges have pursued.

 

Second, this is a milestone moment for ANZ crypto M&A. While there have been many plays for global expansion by exchanges, this is the first of its kind in Australia moving into the US, signaling that the region is entering a more active phase of market maturity. 

 

We believe this transaction will serve as a catalyst for further strategic activity to expand globally and to augment services as companies seek differentiation in both product and customer segments.

 

Strategic Rationale

Swyftx is acquiring Caleb & Brown to expand into the United States via C&B’s regulatory framework, and to acquire the relationship model inherently required with a higher-tier customer base. This acquisition will grant Swyftx entry into the U.S. 12 to 24 months faster than otherwise possible organically. Furthermore, the acquisition diversifies Swyftx’s primarily retail client base to include 25k+ high net worth individuals in numerous countries. 

 

“Caleb & Brown has quietly established one of the most impressive brokerage offerings in the world, with a heavily differentiated private client service. We see enormous growth potential.” – Jason Titman

Alerts

Robinhood acquires BitStamp

Michael Klena
June 7, 2024
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Robinhood Acquires Bitstamp for $200 Million in Cash Consideration

Transaction Overview

On June 6, 2024, Robinhood (NASDAQ: HOOD), a multi-asset retail brokerage, announced its acquisition of Bitstamp, a European crypto exchange, for $200M in cash. The deal is expected to close in the first half of 2025.

 

Target: Bitstamp

Bitstamp is one of the oldest crypto exchanges, founded in 2011. Their key offerings include crypto trading for retail and institutional investors, staking and lending, and advanced trading tools.

 

The company has a global licensing regime that includes 50 active licenses and registrations across Canada, Italy, France, Luxembourg, Spain, The Netherlands, the US (New York BitLicense 40 state  MTLs), the UK, and Singapore. 

 

According to FCA filings, Bitstamp’s UK entity has delivered estimated revenue in line with other large exchanges of $55M, $58M, and $118M in 2019, 2020, and 2021 respectively. In 2022 the firm estimated $31M in revenue with a  $7.5M loss.

 

Founded in 2011 by Nejc Kodrič and Damijan Merlak, Bitstamp now has over 350 employees. The company had raised $19.4M over three funding rounds. In 2018, Belgian private equity firm NXMH acquired an 80% stake in the company at a $500M valuation. Other minority shareholders were Ripple, Pantera, Broslyn Capital, VironIT, and MV Global.

 

Buyer: Robinhood (NASDAQ: HOOD)

Robinhood is an online retail broker that revolutionized the brokerage industry with their commission-free model. Today, they have expanded their offering to include stocks, options, crypto, and a subscription service that offers enhanced features. 

 

In 2021, Robinhood expanded its crypto trading capabilities by acquiring Cove Markets. In 2022, the company partnered with Circle to offer USDC stablecoin within the Robinhood ecosystem.

 

In the last twelve months, Robinhood has done $2.04B in revenue and $668M in normalized EBITDA. The firm currently has 23.9M funded customers and 13.7M monthly active users. Q1 2024 crypto revenues were $126M, up 232% year-over-year. As of March 31, 2024, Robinhood custodies $26.2B in crypto assets, an increase of $11.5B since December 31, 2023. 

 

Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood now has over 3,800 employees. The company has raised over $7.5B through 11 equity funding rounds, with key investors including Sequoia Capital, Andreessen Horowitz, Google Ventures, D1 Capital Partners, and DST Global. In July 2021, Robinhood went public via an initial public offering (IPO), valuing the company at approximately $32B. Today the company has a market cap of $20.2B and trades at an EV / LTM revenue multiple of 7.4x and an EV / LTM normalized EBITDA multiple of 22.6x. The stock is currently up 85% YTD in 2024. 

 

Transaction Parameters

Robinhood acquired Bitstamp for $200M in an all-cash deal. The deal is subject to regulatory approval and is expected to close in the first half of 2025. 

 

In FCA filings, Bitstamp’s UK entity revenue was $31M in 2022.  We estimate the last twelve months’ revenue of approximately $25M using a trading volume / revenue ratio from historical reported periods.  This results in an EV/revenue multiple of 8x.  This compares to Robinhood’s current equivalent valuation multiple of 7.4x, as highlighted above.

 

This is the middle of the pack for their comparables, but nearly half of Coinbase’s revenue multiple: 

 

        Coinbase: 14.7x Enterprise Value / LTM Revenue Multiple

        Bakkt: 4.6x Enterprise Value / LTM Net Revenue Multiple

        Galaxy: 6.9x Enterprise Value / LTM Revenue Multiple

 

We will update EV / revenue multiple as Robinhood publishes their relevant public filing. The deal represents a significant discount from the $500M valuation in the 2018 majority investment.  

 

Strategic Rationale

Crypto continues to take an increasingly important role in Robinhood’s business, accounting for 20% of total revenue in Q1 2024. Despite receiving a Wells notice from the SEC in May 2024, the company continues to expand its crypto business.  This acquisition instantly expands global reach to ensure participation regardless of US actions. It also expands the institutional offering, which positions Robinhood as one of the few publicly traded crypto-influenced companies that will be able to serve institutions as they come into the digital asset space.

 

Architect Partners’ Observations

Bitstamp is a prime asset due to its long operating history and global licensing reach. We feel Robinhood valued the global reach and the institutional business the most and acquired at a reasonable price.  The stock market reaction was positive as well, trading up 7% on the news.

 

On valuation, this deal is an important marker of the current market, albeit with a small sample size.  Valuations have right-sized again and parties on both sides are beginning to bridge the recent gap in expectations.  The deal also shows the value of cash as a form of consideration to allow the facilitation of transactions.  Often, in today’s M&A market, equity is offered as a large component of consideration, creating a myriad of challenges to transaction completion.

 

For the industry, we view bridge transactions – where traditional finance acquires a crypto-native – as a strongly positive indicator.  Consolidation will continue for crypto exchanges and more traditional finance participants will broaden the potential acquirer universe.  

 

Sources 

PitchBook, Bitstamp Website, Robinhood Website, FCA Filings