Three months ago Vancouver fintech Mogo acquired 20% of Coinsquare, Canada’s leading digital asset trading platform for Bitcoin, Ethereum and other cryptocurrencies.
The strategic investment built on a multi-year relationship between the two companies and also included the option for Mogo to acquire an additional 20 percent ownership interest in Coinsquare.
Coinsquare acts as the trading platform for MogoCrypto, a service Mogo launched in 2018 to allow its members an easy and convenient way to buy and sell bitcoin.
Mogo announced that it intends to increase its ownership position in Coinsquare, nearly doubling it stake. Through two separate transactions, exercising 3.2 million call options and purchasing 2.2 million common shares of from Riot Blockchain, Mogo will increase its ownership in Coinsquare to approximately 37 percent.
BUT Mogo may not be done. The company also holds a purchase warrant in Coinsquare that, if and when exercised, would increase its total ownership interest to approximately 48 percent.
Launched in 2014, Coinsquare has grown to become the leading digital asset trading platform in Canada, with trading volume in excess of $525 million last month. The trading platform makes buying and selling digital assets quick and convenient, with customers able to easily manage their portfolio of digital assets.
“We’re excited to increase our ownership position and deepen our relationship with Canada’s premier crypto platform and a clear market leader in one of the most exciting and fastest-growing sectors in fintech,” said Greg Feller, President of Mogo.
“While this asset class continues to experience rapid adoption, it is very much in its infancy and we see a long runway for growth as more and more Canadians look for exposure to cryptocurrencies through a trusted, well-established provider. In addition to the quality of their platform and deep experience as a pioneer in this space, the financial profile is highly compelling. In April alone, the business generated approximately $8.0 million of revenue and a 50%+ EBITDA margin.* Simply put, this is a highly strategic and incredibly valuable platform in the Canadian fintech ecosystem.”