Canada DeFi Platform WonderFi to Buy Bitbuy for $162M
The deal gives WonderFi one of Canada’s fastest-growing crypto exchanges, adding over 375,000 registered users to its DeFi ecosystem.
DeFi platform WonderFi Technologies Inc. agreed to buy Canadian crypto exchange Bitbuy for C$206 million ($161.8 million) in cash and shares, bringing the ability to purchase crypto and access to decentralized finance (DeFi) under one roof.
WonderFi will pay with 70 million new shares and C$50 million ($39 million) in cash, the company said in a statement Tuesday.
“A licensed marketplace serves as a crucial gateway to the digital asset economy, and facilitates a robust end-to-end, unified client experience,” WonderFi CEO Ben Samaroo said in the statement. “The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value.”
The deal gives WonderFi one of Canada’s fastest-growing crypto exchanges, adding 375,000 registered users. The integration of Bitbuy will also establish WonderFi as a leading end-to-end consumer platform with an integrated system for retail customers seeking access to crypto investment and decentralized finance.
Bitbuy, North America’s Leading Crypto Marketplace
Founded in 2016, Bitbuy has grown to become one of North America’s leading crypto marketplaces and a trusted execution platform that services over 375,000 users, with more than $4.4 billion transacted through the platform.
Bitbuy has successfully obtained approval as a crypto marketplace from Canada’s financial watchdog in November 2021.
In November 2021, Bitbuy became Canada’s first approved crypto marketplace, and was recently ranked 9th in the Deloitte Technology Fast 50™ program, with 3,379% in revenue growth from 2017 to 2020 making it the highest-ranking crypto asset trading platform amongst the Fast 50 winners. In the twelve months ended September 30, 2021, Bitbuy generated over $31.0 million in revenue.
Ben Samaroo, Chief Executive Officer of WonderFi, said: “The integration of WonderFi and Bitbuy is a huge step forward in our mission of democratizing finance through easy and secure access to DeFi and crypto. A licensed marketplace serves as a crucial gateway to the digital asset economy, and facilitates a robust end-to-end, unified client experience. The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value for the Company.”
Kevin O’Leary, strategic advisor to WonderFi commented: “This is a combination of two management teams with excellent executional skills that now have the bandwidth, assets and licenses to provide an institutional grade compliant crypto platform to investors interested in exposure to centralized and decentralized financial services.”
Dean Skurka, President and CFO of Bitbuy, said: “This transaction represents an exciting new chapter for Bitbuy. The alignment with WonderFi’s talented team, along with numerous operational synergies, represents opportunities for future growth we can collectively share with our clients, staff and shareholders.”
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375,000 Registered Users and $455 million Assets under Management
Bitbuy has a demonstrated history of material revenue growth and will introduce multiple new business lines to WonderFi, including an approved crypto marketplace and OTC business that services both retail and institutional clients.
Its front-end business line enables a licensed fiat on-ramp and platform to a growing Canadian market segment for WonderFi, which will also onboard more than 375,000 registered users to its DeFi ecosystem as well as over $455 million of assets under custody.
The integration will also bring new features, products and functionality to the existing user base on the Bitbuy platform, while WonderFi will be the owner and operator of Canada’s first crypto market license.