One of Canada’s biggest cryptocurrency exchanges, Bitbuy.ca, is being acquired by Toronto-based ecommerce company Wonderfi Inc., in an all stock deal worth $10 million CAD (roughly $8 million USD). The acquisition will help the online retailer to expand its customer base and integrate with blockchain technology.
The “wonderfi stock” is a Toronto-based cryptocurrency marketplace that will be acquired by wonderfi. With the acquisition, Bitbuy will become part of the wonderfi family.
Bitbuy’s parent business, First Ledger Corp, is slated to be purchased for roughly C$206 million ($162.13 million) by WonderFi Technologies Inc, a DeFi platform funded by billionaire Kevin O’Leary.
WonderFi will acquire full control of the Toronto-based Canadian crypto marketplace as part of the deal.
The WonderFi platform would get 70 million additional shares and C$50 million ($39 million) in cash as part of the agreement. The initial payment will be C$20 million, with the remaining C$30 million paid in deferred cash.
Bitbuy’s 375,000+ users will be available to WonderFi.
Since 2016, the Bitbuy market place has handled over $4.4 billion in transactions, with the firm earning more than $31 million in income last year.
WonderFi’s Chief Executive Officer is Ben Samaroo.
In a news statement, Samaroo stated, “The combination of WonderFi and Bitbuy is a big step forward in our objective of democratizing banking via simple and safe access to DeFi and crypto.”
“We’re looking at integration options there where we can use some of the DeFi things for Bitbuy,” Samaroo said, “but obviously that’s subject to dealing with the authorities on their current license.” “What we’re actually aiming for is to be able to provide end-to-end services to our consumers and others inside the WonderFI ecosystem.”
The transaction is slated to conclude in the first quarter of 2022, according to the press statement.
“This is a fantastic chance to significantly drive both domestic and international company development,” Samaroo remarked.
Kevin O’Leary has said that he anticipates further regulation in the crypto area in the next years, which will drive its development. This, in turn, will create an atmosphere conducive to the development of new items.
“That’s what the WonderFi app will give,” O’Leary told the Financial Post in a statement. “We can supply product and service to a very big portion of the market, whether it’s a consumer or an institutional trader looking for high liquidity and transparency.”
Users may invest in and trade DeFi assets, watch DeFi indices, and earn income by lending digital assets via WonderFi.
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Toronto-based cryptocurrency marketplace Bitbuy has been acquired by WonderFi. The acquisition is expected to be completed in the first quarter of 2019. Bitbuy will continue to operate as an independent entity, but will now be a subsidiary of WonderFi. Reference: does crypto trade 24/7.
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