Crypto M&A | Nov 17, 2023
Bitvo logoWonderFi Technologies Inc., through its subsidiary Bitbuy Technologies Inc., acquires all client accounts of Bitvo Inc., and the Bitvo.com domain
Bitbuy has successfully purchased over 17,000 registered client accounts from Bitvo, a Calgary-based crypto-trading platform. These accounts have collectively generated over $235 million in trading volume and over $1.5 million in net revenue in the past twelve months. In October 2023 alone, Bitvo reported over $35 million in trading volume and approximately $375,000 in net revenues.
See: Kevin O’Leary-backed WonderFi acquires Coinberry for $38.5 million
The acquisition was executed through an asset purchase agreement. Bitbuy made an upfront pre-payment to Bitvo and will pay a total of 50% of a net-revenue share from the acquired client accounts, subject to certain conditions and up to specified net revenue maximums.
Bitbuy will integrate Bitvo’s client accounts into its platform, ensuring a seamless transition for Bitvo’s clients. This integration is expected to incur nominal incremental operating costs for WonderFi.
The acquisition received non-objection letters from relevant securities regulators, ensuring compliance with Canadian financial regulations.
Market Dominance and Strategic Growth
With this acquisition, WonderFi has consolidated its position in the Canadian market, now controlling client accounts, trading volumes, and associated net revenues from five of the eleven registered crypto-trading platforms in Canada.
See: Kevin O’Leary-Backed DeFi Platform WonderFi to Purchase Bitbuy for CA$206M in Cash, Shares
The acquisition represents a non-dilutive acquisition for WonderFi, promising immediate cash flow, increased scale, and a diverse client profile, including a strong institutional client base from Bitvo.
Dean Skurka, President and CEO of WonderFi:
Emphasized the strategic importance of the acquisition, highlighting its non-dilutive nature, immediate cash flow benefits, and the expected payback period of less than six months. He also noted the acquisition’s role in accelerating WonderFi’s growth and diversifying its client profile.
Closing Thought
See: WonderFi’s Much Anticipated Crypto Merger with Coinsquare and Coinsmart Officially Closes
This move comes at a time when the Canadian crypto landscape is witnessing significant changes, with international players like Coinbase entering the market and others like Binance and Bybit exiting.
View the original release –> here
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- Source: https://ncfacanada.org/wonderfi-buys-bitvo-further-consolidating-crypto-markets/
