Crypto exchange WonderFi confirms merger talks with Coinsquare

Crypto speech WonderFi, which is backed by crypto capitalist and billionaire Kevin O’Leary, has confirmed it is successful preliminary discussions with chap Canadian crypto speech Coinsquare for a imaginable merger.

In a connection connected Jan. 12, WonderFi responded to a Bloomberg study suggesting the 2 exchanges were successful "advanced merger talks" to "create a Canadian crypto giant."

WonderFi clarified that the discussions were "preliminary" astatine this stage, adding that it cannot warrant that an statement volition beryllium reached.

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"In effect to the property speculation, the Company acknowledges that it has held preliminary discussions with assorted 3rd parties with respect to some imaginable acquisitions and the Company being acquired, which is accordant with past signifier and the Company's wide acquisition strategy." 

"These discussions are preliminary successful quality and are ongoing, and nary assurance tin beryllium fixed that immoderate statement oregon agreements volition beryllium reached, oregon that the presumption of a transaction volition beryllium agreed upon oregon that a transaction volition beryllium completed," it said.

WonderFi is simply a crypto speech headquartered successful Vancouver Canada. 

Coinsquare is besides a crypto speech operating successful Canada and is based successful Toronto. A Bloomberg report connected Jan. 12 said that though Coinsquare does not disclose assets nether absorption they are estimated to person 500,000 users connected its platform.

WonderFi’s firm overview from November 2022. Source: WonderFi Q3 2022 capitalist deck.

A imaginable merger of the 2 could spot the combined entity serving 1.15 cardinal users, making them the argest speech successful Canada. 

WonderFi is 1 of the fewer publically traded exchanges successful Canada and has seen its stock terms summation by astir 30% implicit the past 24 hours pursuing property speculation of a merger.

WonderFi stock terms from Jan. 5 to Jan. 12. Source: TradingView.

News of the 2 exchange's imaginable merger comes conscionable days aft Coinsquare terminated an statement to get each the outstanding shares for a subsidiary of Canadian crypto speech CoinSmart, successful a woody which CoinSmart announced connected Sep. 22 would spot them person $3 cardinal currency and implicit $26 cardinal successful Coinsquare shares arsenic payment.

WonderFi besides had a engaged twelvemonth of acquisitions successful 2022, announcing connected Jan. 4 that they would beryllium acquiring chap Canadian crypto speech Bitbuy’s parent institution for $162 million, earlier it continued its Canadian expansion by acquiring crypto speech Coinberry for $38 cardinal connected Apr. 18.

Both of the acquisitions person since been finalized.

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In an interrogation astatine the clip O’Leary had mentioned that determination would be”several much and adjacent bigger” acquisitions connected the way.

It astir precocious acquired North American blockchain improvement steadfast Blockchain Foundry connected Sep. 1, 2022, which precocious launched a nonfungible exertion (NFT) minting level and marketplace, successful summation to a Web3 learning platform.