Casey Wagner

<div id="highlights-block_6259da4816b6d" class="highlights">
 <ul>
 <li>WonderFi announces plans to purchase second crypto exchange in Canada, which will give it a 33% market share </li>
 <li>The teams expect the regulatory approval process to move quickly after its last acquisition set a precedent</li>
 </ul>
 
</div>



A month after closing its last deal, Canada-based decentralized finance company WonderFi Technologies has announced plans to purchase Coinberry, another regulated cryptocurrency exchange. 



WonderFi has entered a definitive agreement to purchase <a href="https://www.coinberry.com/" target="_blank" rel="noreferrer noopener">Coinberry</a> for $25.54 million. The exchange, founded in 2017, currently services over 220,000 Canadian clients and has posted over $1 billion in transactions to date.&nbsp;



“We have a shared belief with WonderFi that seamless integration and unified access to digital assets is the future and where we want to be positioned,” said Coinberry CEO and Founder, Andrei Poliakov.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“We chose this route for Coinberry because we felt it was the best thing for our loyal Canadian users and this merger will give users access to the best prices, the best products, and the best service.”   </blockquote>



In March, WonderFi <a href="https://cms.blockworks.co/wonderfi-announces-closing-of-bitbuy-acquisition-overcoming-regulatory-hurdles/" target="_blank" rel="noreferrer noopener">closed its acquisition</a> of First Ledger Corp, the parent company of Bitbuy Technologies, after first announcing plans to purchase the exchange in January. Regulatory hurdles were behind the delay, as it marked the first time in Canadian history that every provincial regulator had to approve a change of control where a publicly traded company, WonderFi, was acquiring an approved crypto entity, said Ben Samaroo, CEO of WonderFi.&nbsp;



The Coinberry purchase is subject to the same regulatory approval process, but the teams expect this process to move faster this time.&nbsp;



“WonderFi set a precedent with the acquisition of Bitbuy as it was the first acquisition of a licensed crypto platform in Canada,”  said Samaroo.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“As we have now carved the path for this type of acquisition, we expect that the Coinberry deal will achieve regulatory approval on a shorter timeline.” </blockquote>



Once the deal is finalized, WonderFi will own two out of the six registered cryptocurrency trading platforms in Canada, putting it at a 33% market share.&nbsp;



“WonderFi’s management team continues to execute on accretive acquisitions, and this is an extremely important one, because it shows the speed and vision behind WonderFi’s plan,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor. “Compliant access to crypto is what matters, and WonderFi has quickly established itself as a leader in Canada. Next stop, global.”



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Bitbuy

WonderFi Continues to Consolidate Canadian Market With Second Acquisition￼

<div id="highlights-block_623dbf2e1a8ef" class="highlights">
 <ul>
 <li>Months after the deal was introduced, WonderFi has announced the close of its acquisition of Bitbuy, the only regulated cryptocurrency exchange in Canada</li>
 <li>The process resulted in WonderFi’s product offerings being allowed to be made available in select Canadian provinces</li>
 </ul>
 
</div>



Canada-based decentralized finance company WonderFi Technologies has closed its acquisition of First Ledger Corp, the parent company of Bitbuy Technologies, after a long regulatory battle.&nbsp;



WonderFi, which trades on the Neo Exchange in Canada, has agreed to pay $161.8 million in USD in cash and shares.&nbsp;



The deal was <a href="https://cms.blockworks.co/kevin-oleary-backed-wonderfi-acquires-bitbuy/" target="_blank" rel="noreferrer noopener">first announced</a> in January 2022. It’s the first time in Canadian history that every provincial regulator had to approve a change of control where a publicly traded company, WonderFi, was acquiring an approved crypto entity, said Ben Samaroo, CEO of WonderFi. 



There were three main regulatory considerations in relation to the acquisition, Samaroo said.&nbsp;



“One, a change of control occurrence of a newly approved marketplace and restricted dealer, two, a publicly traded company acquiring a company holding these approvals and three, the acquirer, WonderFi, engaged in DeFi, a high-growth emerging industry,” he said. 



WonderFi was interested in the acquisition of Bitbuy because it provides an opportunity to combine a centralized exchange, Bitbuy, with WonderFi’s DeFi products.&nbsp;



“This is a very important transaction for WonderFi’s future,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor, when the deal was first announced.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“When you think about customer acquisition, you want to make sure that you provide every opportunity to service that customer…you want to offer every service they want.” </blockquote>



Collectively, the two companies have raised over $100 million dollars over the past 12 months, making the combined entity the largest capital raised for any single crypto platform in Canada, according to WonderFi.&nbsp;



WonderFi’s DeFi products are not currently available throughout Canada, but Samaroo is hopeful that this regulatory process will open the door for greater compliance.&nbsp;



“As a result of this acquisition, the regulatory bodies in Canada prudently chose to take the opportunity to delve into the WonderFi product offerings,” he said. “The result of the regulatory exercise led to select provinces choosing to allow WonderFi’s products to be made available, while some of the other provinces elected to further review and develop their views on the new high-growth emerging industry.”



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acquisition

WonderFi Announces Closing of Bitbuy Acquisition, Overcoming Regulatory Hurdles

<div id="highlights-block_61d4d731d3534" class="highlights">
 <ul>
 <li>DeFi platform WonderFi is moving into the exchange space with the purchase</li>
 <li>Bitbuy is looking to expand DeFi offerings through WonderFi’s application </li>
 </ul>
 
</div>



Decentralized finance company WonderFi Technologies has acquired Canadian cryptocurrency exchange Bitbuy in a deal of $161.8 million in cash and shares, the companies announced Tuesday.&nbsp;



Bitbuy, which became Canada’s first approved cryptocurrency marketplace in November 2021 has added more than 375,000 users and transacted more than $4.4 billion since its launch in 2016.&nbsp;



“This is a very important transaction for WonderFi’s future,” said Kevin O’Leary, an entrepreneur and WonderFi advisor and investor. “When you think about customer acquisition, you want to make sure that you provide every opportunity to service that customer… you want to offer every service they want.”&nbsp;



WonderFi will now own and operate the Bitbuy cryptocurrency marketplace and over-the-top business, which services both retail and institutional clients. The acquisition will help the cryptocurrency exchange expand more into DeFi offerings, which Bitbuy president Dean Skurka said is the future of the industry.&nbsp;



“We want to always be where the puck is going and DeFi is certainly representative of the future of finance and the future of crypto,” Skurka said.&nbsp;



Bitbuy will merge with the WonderFi retail app, providing greater opportunities for client trading and transactions, Skurka said.&nbsp;



The WonderFi and Bitbuy teams look forward to expanding offerings to both retail and institutional clients, but O’Leary said 2022 will be a significant year for <a href="https://cms.blockworks.co/kevin-oleary-bitcoin-etf-wont-be-approved-until-at-least-2023/" target="_blank" rel="noreferrer noopener">institutional adoption</a> in particular. 



“I spend the majority of my day speaking with institutions,” he said. “One of the great opportunities here is that many of them have not yet got clearance to buy crypto assets for a wide range of reasons, some of it has to do with ESG issues, some of it has to do with compliance and regulation.”&nbsp;



Bitbuy is a broad platform that will allow institutional investors to purchase crypto-related equities, opening the door for institutions to gain exposure to the asset class.&nbsp;



“We&#8217;ve been a retail-focused app primarily over the last four years, in terms of products,” Skurka said. “On the back of this marketplace license and now with this acquisition, we&#8217;ve been focusing more on institutional clientele.”&nbsp;



The acquisition is expected to close during the first quarter of 2022. Skurka will be appointed to the board upon closing. O’Leary joined the WonderFi team in June 2021 as a strategic investor following the close of a financing round. 



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