EToro is said to eye bigger acquisitions with $1 billion cash pile

[eToro Announces $20 Million Fund for NFTs And Launches Collection With A Grand Celebration]
Aaron Davidson

EToro Group (NASDAQ:ETOR [https://seekingalpha.com/symbol/ETOR]) is preparing to pursue bigger acquisitions as it looks to broaden its trading platform, Bloomberg News reported Sunday, citing co-founder and executive director Ronen Assia.

Speaking at the Ambrosetti Forum in Cernobbio, Italy, Assia said the company is in a strong financial position to explore mergers and acquisitions. He noted that EToro (NASDAQ:ETOR [https://seekingalpha.com/symbol/ETOR]) is considering deals that could add new asset classes and expand its presence into additional markets, though he declined to identify specific targets.

The Israel-based brokerage, founded in 2007 by Assia and his brother Yoni, reported roughly $1.2 billion in cash and cash equivalents as of June 30, alongside a cash balance of $988 million and no outstanding debt. Since 2020, EToro (ETOR [https://seekingalpha.com/symbol/ETOR]) has completed a series of purchases, including fintech startup Gatsby and Australian investment platform Spaceship in 2024.

While some competitors are moving into prediction markets, Assia said EToro (ETOR [https://seekingalpha.com/symbol/ETOR]) doesn’t have any plans to follow that route, describing them as speculative products with limited long-term value for investors. Prediction markets, where participants can wager on events ranging from pop culture moments to public health risks, have gained traction recently, often overlapping with sports betting.

EToro (ETOR [https://seekingalpha.com/symbol/ETOR]) has benefited from renewed interest in digital assets. Cryptocurrencies have rallied sharply since Donald Trump’s reelection in November, as traders bet on looser oversight with the new administration installing industry-friendly officials.

The company went public in May, raising $620 million through its IPO. Earlier this year, EToro (ETOR [https://seekingalpha.com/symbol/ETOR]) also announced an expanded futures offering in partnership with CME Group (CME [https://seekingalpha.com/symbol/CME]), underscoring its ambition to diversify its product lineup, Bloomberg News reported.

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