Just weeks after closing their acquisition of Bitbuy, Kevin O’Leary-backed WonderFi continues to consolidate Canadian licensed crypto platforms by acquiring Coinberry for $38.5 million.
Vancouver-based WonderFi (NEO: WNDR) has entered into a definitive agreement to acquire Toronto’s Coinberry.
Founded in 2017, Coinberry services over 220,000 Canadian clients and in 2021 the crypto-trading platform generated over $13 million in revenue.
After acquiring Coinberry, WonderFi’s Web3 community of registered users will grow to over 750,000, making it one of the largest ecosystems of crypto participants in North America.
This is the first time in Canadian history that the owner of a registered crypto platform has acquired another registered platform. Two of the six Canadian registered crypto-trading platforms are now under one publicly traded company and it appears that WonderFi is not done.
Smaller exchanges who can’t afford the high cost of regulation and product innovation are destined to shut down or get swallowed up by Web3 companies like WonderFi further consolidating the Canadian crypto investment industry.
By consolidating, Canadian crypto platforms like WonderFi may be able to defend their “Canadian terrority” against unregistered foreign exchanges like Crypto.com, FTX and Coinbase who have much deeper pockets when it comes to customer acquisition.
“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. Compliant access to crypto is what matters and WonderFi has quickly established itself as a leader in Canada. Next stop, global,” said WonderFi Strategic Advisor and Investor, Kevin O’Leary.
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