eToro Buys TradeZero for Up to $231M Amid Crypto Revenue Decline

eToro has agreed to buy TradeZero, a US-focused online brokerage for active traders, in a deal worth up to $231 million. The purchase is eToro's third acquisition this year and will expand its regulated brokerage presence in two markets it aims to grow in.

TradeZero generates around $80 million in revenue each year, with 81% gross margins in the second quarter. eToro expects the deal to add to adjusted earnings per share in its first year after completion.

The acquisition comes as eToro's crypto revenue shrinks. Revenue from cryptoassets fell to $1.35 billion in the second quarter from $1.91 billion a year earlier, while crypto trades on the platform totaled 1.4 million in July, down 73% year-over-year.