Robinhood Acquires WonderFi: Expansion into Canada

Robinhood Expands into Canada with WonderFi Acquisition

Robinhood announced on Tuesday its agreement to acquire WonderFi, a prominent Canadian cryptocurrency company, for CA$250 million – equivalent to approximately $178.56 million. This acquisition is a strategic move to bolster Robinhood’s presence within Canada’s expanding digital asset landscape.

WonderFi’s Platform and Shareholder Value

WonderFi currently manages two regulated cryptocurrency platforms, Bitbuy and Coinsquare, collectively holding over CA$2.1 billion in assets under custody. Shareholders of WonderFi will receive CA$0.36 per share as part of the all-cash transaction.

This offer represents a 41% premium compared to the company’s most recent closing share price. WonderFi initially became a publicly traded entity in Canada via a reverse takeover process in 2021.

Global Expansion Strategy

This acquisition builds upon Robinhood’s previous investment of $200 million in the European exchange Bitstamp, finalized last year. It demonstrates a clear commitment to a global expansion strategy focused on the cryptocurrency market.

Integration of Teams

Following the completion of the deal, WonderFi’s team, led by CEO Dean Skurka, will be integrated into Robinhood Crypto. This will augment Robinhood’s existing Toronto-based workforce of approximately 140 employees.

Deal Timeline

The acquisition is anticipated to be finalized during the latter half of the current year.

Robinhood’s Crypto Focus

In a December interview with TechCrunch, Robinhood CEO Vlad Tenev expressed optimism regarding a more supportive U.S. administration for the cryptocurrency sector. He also highlighted Robinhood’s increasing concentration on cryptocurrency initiatives.

Tenev stated, “I think crypto is the next in line in a long chain of technology innovations that have changed the underlying infrastructure of the financial system in a positive way.”