eToro has confirmed its acquisition of U.S.-focused brokerage TradeZero in a deal valued at up to $231 million. This strategic move comes as eToro aims to expand its footprint in the American market amidst a significant decline in crypto trading activity.
The acquisition, which involves a combination of cash and stock, is part of eToro's broader strategy to enhance its offerings in the United States. The announcement follows a reported 73% year-over-year drop in crypto trades on eToro's platform, highlighting the challenges faced by trading platforms in the current market environment.
Additionally, eToro's crypto-related revenue fell by approximately 30% in the second quarter compared to the same period last year. This decline underscores the broader downturn in the crypto market, which has seen reduced trading volumes and investor interest.
The acquisition of TradeZero is expected to bolster eToro's capabilities and customer base in the U.S., positioning the company to better navigate the fluctuating crypto landscape.
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