Bitstamp is one of the oldest cryptocurrency exchanges in the world and the longest continuously operating Bitcoin exchange. Founded in August 2011 in Slovenia by Nejc Kodric and Damijan Merlak, it was established as a European alternative to the then-dominant Mt. Gox exchange. Bitstamp has played a significant role in the development of Bitcoin's early trading infrastructure and in bringing regulatory legitimacy to the cryptocurrency exchange industry.
History
Bitstamp began operations in August 2011 from a garage in Slovenia, with little more than a server, a couple of laptops, and approximately one thousand euros in initial capital. The exchange was conceived at a time when Mt. Gox, based in Tokyo, handled the vast majority of global Bitcoin trading volume. Kodric and Merlak saw an opportunity to provide European traders with a closer, more reliable alternative.
In April 2013, the company relocated its registration to the United Kingdom to gain access to better financial and legal infrastructure. Seeking even stronger regulatory standing, Bitstamp moved its headquarters to Luxembourg in 2016, where it became the first cryptocurrency exchange in the world to obtain a fully licensed payment institution status from a national regulator -- the Commission de Surveillance du Secteur Financier (CSSF). This license allowed Bitstamp to operate legally across all European Union member states.
In October 2018, Belgian private equity firm NXMH acquired a majority stake in Bitstamp at a reported valuation of approximately $400 million. In June 2024, Robinhood announced the acquisition of Bitstamp for $200 million in cash, a deal that was completed in 2025. The acquisition brought Bitstamp's extensive global licensing portfolio -- comprising over 50 active licenses and registrations -- under Robinhood's umbrella.
Security Incident
In January 2015, Bitstamp suffered a major security breach when hackers stole approximately 18,866 BTC (worth roughly $5.2 million at the time) from the exchange's hot wallet. The attack was carried out through a sophisticated phishing campaign targeting six Bitstamp employees over several weeks. The attackers ultimately gained access to two servers containing the hot wallet file and its passphrase.
Rather than attempting to patch the compromised system, Bitstamp made the decision to rebuild its entire trading platform from the ground up using a secure backup maintained in a clean room environment. The investigation involved digital forensics firm Stroz Friedberg, the US Secret Service, the FBI, and UK cybercrime authorities. Importantly, the exchange's cold storage reserves were not affected, and all customer funds beyond the stolen amount remained secure.
Bitcoin Involvement
Bitstamp's significance in Bitcoin history extends beyond being merely an early exchange. During the period between Mt. Gox's dominance and its eventual collapse in February 2014, Bitstamp served as a critical alternative venue for Bitcoin price discovery. When Mt. Gox imploded, Bitstamp was one of the few established exchanges capable of absorbing displaced trading volume, helping to stabilize the market during one of its most turbulent periods.
The exchange has consistently focused on a curated selection of trading pairs with an emphasis on Bitcoin and major cryptocurrencies, in contrast to exchanges that pursued aggressive listing strategies. Bitstamp's BTC/USD price feed has been widely referenced by financial data providers and has served as a benchmark for institutional Bitcoin pricing.
Significance
Bitstamp represents a model of regulatory-first growth in the cryptocurrency exchange industry. By prioritizing licensing and compliance over rapid expansion, the exchange established a track record that helped legitimize Bitcoin trading in the eyes of European regulators and traditional financial institutions. Its survival through multiple market cycles, security incidents, and ownership changes -- while contemporaries like Mt. Gox, BTC-e, and others collapsed -- underscores the durability of its approach.
External Links
References
- Bitcoin Core -- the network Bitstamp provides trading access to
- Xapo -- another early Bitcoin company that pursued a compliance-first approach
- Digital Gold -- Nathaniel Popper's narrative history covering the early exchange era
- Bitcoin Foundation -- early industry organization contemporaneous with Bitstamp's founding