Canadian decentralized finance firm WonderFi Technologies announced plans to acquire Toronto-based crypto trading platform Coinberry in a $38.3 million all-stock deal.
Why it matters: WonderFi is driving consolidation in the market by snapping up regulated exchanges in Canada, which will expand access to its DeFi products and could pave the way for international expansion.
Flashback: The Coinberry deal closely follows WonderFi’s acquisition of First Ledger Corp., the parent company of Bitbuy Technologies, which closed on March 24.
- That was the first time a publicly traded firm had acquired a licensed crypto entity in Canada.
- But, once this latest deal closes, expected this quarter, the company will own two of the country’s six licensed crypto trading platforms.
Yes, but: WonderFi’s acquisition spree isn’t just about being a bigger presence on its home turf — it’s also gearing up to be a more relevant player on the global stage.
- At the same time global exchanges like FTX and Coinbase are looking to gain a foothold in the Canadian market, WonderFi and others are looking abroad.
- “This allows us to enter into global markets and start competing with some of the larger players,” WonderFi CEO Ben Samaroo tells Axios.
Details: Since being founded in 2017, Coinberry has processed more than $1 billion in transactions and had over $13 million in revenue in 2021.
- With the Coinberry acquisition, WonderFi will add 220,000 users and more than $100 million of digital assets under custody to its portfolio.
- That’ll bring its combined user base up to more than 750,000 across its multiple platforms.
- WonderFi will also be adding 50 staff, bringing total headcount to 180.
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