Robinhood Expands Its Horizons: Acquiring WonderFi to Bolster Crypto Presence in Canada
In an exciting development for the digital finance landscape, Robinhood announced its acquisition of the Canadian crypto powerhouse WonderFi for CA$250 million (approximately $178.56 million) in an all-cash deal. This strategic move marks Robinhood’s foray into Canada’s burgeoning digital asset marketplace.
WonderFi is home to two well-regulated crypto platforms, Bitbuy and Coinsquare, boasting over CA$2.1 billion in assets under management. The acquisition offers WonderFi shareholders a price of CA$0.36 per share, which is a generous 41% premium compared to the company’s recent closing figures. For context, WonderFi made waves in 2021 when it went public via a reverse takeover.
This acquisition comes on the heels of Robinhood’s earlier $200 million purchase of the European exchange Bitstamp, further cementing the company’s ambition for global expansion.
Incorporating WonderFi will bring its experienced team, led by CEO Dean Skurka, into Robinhood’s Crypto division, adding to the company’s existing workforce of around 140 employees in Toronto.
The acquisition is anticipated to finalize in the latter half of this year, enhancing Robinhood’s position in the crypto market.
In a recent conversation with TechCrunch, Robinhood CEO Vlad Tenev expressed optimism regarding the new U.S. administration’s more favorable stance towards the crypto sector. Tenev highlighted his belief that cryptocurrency is a transformative force within the financial system. “I see crypto as the next chapter in a progressive series of technological strides that enhance the financial framework,” he noted.
As Robinhood continues to broaden its reach, this acquisition positions the company favorably within the competitive landscape of digital finance, setting the stage for an exciting future in the crypto realm.