TORONTO — WonderFi Technologies Inc. announced Monday plans to acquire Toronto-based cryptocurrency exchange Coinberry, as consolidation continues in Canada’s digital asset sector.
The Kevin O’Leary-backed company said in a release that the deal is valued at approximately $38.6 million in stock.
The move will put two of Canada’s registered crypto-trading platforms under one umbrella.
“Compliant access to crypto is what matters and WonderFi has quickly established itself as a leader in Canada,” O’Leary said.
The agreement comes as cryptocurrency leaders push for a national strategy with clearer, friendlier policies for the cryptocurrency industry, and only a few weeks after WonderFi closed its deal to buy Bitbuy Technologies Inc., another Toronto-based cryptocurrency exchange.
WonderFi said its community of registered users will grow to over 750,000 with the purchase of Coinberry. Founded in 2017, Coinberry services more than 220,000 users, with over $1 billion transacted to date.
Coinberry received regulatory approval by the Ontario Securities Commission just eight months ago. Through this deal, WonderFi will add $100 million of assets under custody as of the end of December, 2021.
WonderFi CEO Ben Samaroo said the acquisition, along with the Bitbuy deal, “establishes a great framework” for the company’s expansion into the global markets this year. WonderFi said it is looking to make more acquisitions.
WonderFi also said that with the addition of Coinberry, it will become Canada’s largest employer of crypto-industry professionals, with over 160 employees.
The deal is expected to close in the second quarter of 2022 and is subject to shareholder and regulatory approvals.
This report by The Canadian Press was first published April 18, 2022.
