WonderFi Acquires Parent Company of Canadian Crypto Platform Bitbuy for Around $162 Million

Representations of the virtual currencies Ripple, Bitcoin, Etherum and Litecoin are seen on a PC motherboard in this illustrative image, February 14, 2018. REUTERS/Dado Ruvic/Illustration

Join now for FREE unlimited access to Reuters.com

Register

Jan 4 (Reuters) – WonderFi Technologies Inc (WNDR.NLB), backed by investor Kevin O’Leary, has agreed to buy Bitbuy’s parent company, First Ledger Corp, for around C$206 million (162, $13 million), giving him full ownership of the Canadian crypto. Marlet.

Crypto aggregation platform WonderFi will pay with 70 million new shares and C$50 million ($39 million) in cash, of which C$20 million will be paid upfront and C$30 million in deferred cash, the company said in a statement Tuesday.

The deal will give WonderFi access to Toronto-based Bitbuy’s more than 375,000 users. More than $4.4 billion has been traded on the Bitbuy marketplace since 2016, and the company generated more than $31 million in revenue last year, according to WonderFi’s release.

Join now for FREE unlimited access to Reuters.com

Register

“The integration of WonderFi and Bitbuy is a huge step forward in our mission to democratize finance through easy and secure access to DeFi and crypto,” WonderFi CEO Ben Samaroo said in a statement. Press.

Decentralized finance (DeFi) platforms allow users to lend, borrow and save – typically in cryptocurrencies – while bypassing traditional financial gatekeepers such as banks.

The acquisition is expected to be completed in the first quarter of 2022, according to the statement.

According to a report in the Globe and Mail newspaper, Canada’s WonderFi hopes to expand to Australia next.

“This is a great opportunity to really accelerate business growth in Canada and abroad,” WonderFi’s Samaroo told The Globe and Mail.

In 2021, Australian online retail company Kogan.com Ltd (KGN.AX) and Bitbuy entered into a domain sale agreement which saw Kogan sell the bitbuy.com domain name to Bitbuy’s parent company.

The deal also included an advertising agreement that Kogan.com will provide marketing support for Bitbuy’s future launch in the Australian market.

($1 = 1.2706 Canadian dollars)

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Mrinmay Dey and Akriti Sharma in Bengaluru; Editing by Ana Nicolaci da Costa

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.