Bankman-Fried Belies Bear, Bids for Bitvo

The Bahamas-based firm agreed to acquire Canadian crypto exchange Bitvo for an undisclosed sum

share

key takeaways

  • FTX’s acquisition is expected to close in the third quarter of 2022
  • CEO Sam Bankman-Fried earlier told Blockworks he expects a wave of M&A activity throughout the market downturn

Cryptocurrency exchange FTX has struck an agreement to acquire Canadian cryptoasset trading firm Bitvo, the company announced, Friday.

FTX didn’t disclose the terms of the deal. The announcement comes during a period of turmoil in the cryptocurrency industry, with asset prices extending losses in a broad sell-off for several days. Companies in the space, including Celsius, Three Arrows Capital and Babel Finance, have all disclosed liquidity issues, raising fears that more turbulence might be in store for investors.

The Bahamas-based firm noted that Bitvo secured the first license to offer cryptoasset trading services across Canada. It is also registered with the intelligence agency Financial Transactions and Reports Analysis Centre of Canada.

“Canada has shown a growing interest in digital asset trading, and we’re thrilled to help provide entry into one of the leading regulated crypto asset trading platforms in the world to the Canadian cryptocurrency community,” Bitvo CEO Pamela Draper said in a statement.

Alberta-based Bitvo will be integrated into FTX after the acquisition, which is expected to close in the third quarter of this year. 

FTX’s valuation rose to $32 billion after raising $400 million in its third fundraising round within six months in January, indicating that it is well placed to make acquisitions in the space.

CEO Sam Bankman-Fried told Blockworks in April that difficult market conditions could trigger a wave of mergers and acquisitions, and that it “wouldn’t be totally shocking” for the company to acquire some shrinking exchanges.

In May, Bankman-Fried personally bought a 7.6% stake in trading platform Robinhood. In June, FTX expanded into Japan following its acquisition of a local fintech Liquid Group and its subsidiaries, in a bid to navigate the stringent regulatory environment in the country.

A recent report from crypto research firm Kaiko shows bitcoin trading volumes on FTX exceeded Coinbase’s for the first time in May.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

recent research

Pyth Cover.jpg

Research

Pyth is a low latency pull-based oracle. In a future that looks increasingly high frequency, with various alt L1s and L2s that have significantly shorter block times than Ethereum, and an explosion of “high-frequency” protocols such as oracle or CLOB perp DEXs, Pyth’s low latency oracle product looks much better positioned to capture a significant amount of market share in comparison to competitors.

article-image

The DOJ made the plea agreements of Binance and Changpeng Zhao public on Tuesday

article-image

Binance settlement “an important part of clearing the way for the next bull market cycle,” crypto hedge fund executive says

article-image

Hester Peirce reiterated Tuesday that court cases are not the only path to regulatory clarity for crypto, but her colleagues do not always agree

article-image

The indictment followed leaks Monday that a Binance settlement deal was forthcoming

article-image

The Binance executive is also reportedly set to make an appearance in a Seattle courtroom Tuesday

article-image

Monday developments reaffirmed the US as unfriendly to crypto while also offering a potential bullish outlook for segment firms, industry watchers say