Key Details:
- Robinhood Markets has struck a deal to acquire WonderFi for $178.98 million.
- This acquisition reflects a 41% premium over the recent closing share price of WonderFi.
- WonderFi operates significant crypto platforms, Bitbuy and Coinsquare, which will assist in Robinhood’s international growth.
Robinhood’s recent venture into the Canadian market marks a critical step toward increasing its influence within the cryptocurrency ecosystem. This all-cash deal is valued at 36 Canadian cents per share, representing a 41% mark-up compared to WonderFi’s previous closing value.
“WonderFi has developed an impressive portfolio serving both novice and expert crypto users, making them a great ally in advancing Robinhood’s mission in Canada,” commented Johann Kerbrat, head of Robinhood Crypto. Kerbrat is scheduled to speak at Consensus Toronto in the upcoming days.
With sights set on expanding internationally, Robinhood previously sought to enhance its visibility, having already pursued the acquisition of Bitstamp, a cryptocurrency exchange, before this latest venture. This strategic acquisition will enable Robinhood to tap into the growing Canadian customer base while intensifying competition with other exchanges like Coinbase and Wealthsimple Crypto.
Trading activity on WonderFi surged, achieving C$3.57 billion in volume for fiscal 2024, after a notable 28% increase. This acquisition aligns with a broader trend of heightened merger and acquisition activity within the cryptocurrency sector, particularly as regulatory attitudes shift favorably, particularly under the recent U.S. presidency.
Update (May 13, 14:43 UTC): Updates on executive appearances at Consensus Toronto.
