Canadian crypto space consolidates: WonderFi, Coinsquare, CoinSmart merge into single entity

Rick Steves

The combined company, WonderFi, has transacted over $17 billion since 2017 and has more than $600 million in assets under custody, with a registered user base in excess of 1.6 million Canadians.

Mogo has announced that Coinsquare, in which Mogo had a 34% ownership stake, WonderFi, and CoinSmart, have closed their previously announced business combination transaction. Mogo has become the largest shareholder of the combined company, owning approximately 14%.

As a result of the transaction, the combined entity, WonderFi has become one of the largest regulated crypto investing ecosystems in Canada offering Canadians a wide range of diversified products and services, including both retail and institutional crypto trading, staking products, B2B crypto payment processing, and digital asset custody.

In addition to the crypto-focused services, WonderFi will soon be launching sports betting and gaming.

WonderFi offers retail and institutional trading, staking, B2B payments, custody in Crypto

Greg Feller, President and CFO at Mogo, commented: “We congratulate the companies on completing this milestone transaction, creating a unique investment opportunity with the leading crypto exchange in Canada. Mogo shareholders move forward with meaningful ownership in a public company with the only fully regulated crypto exchange, as well as scale and diversification that we believe positions them well to benefit from long-term growth trends in the industry and to build value for shareholders over time.”

The combined company has transacted over $17 billion since 2017 and has more than $600 million in assets under custody, with a registered user base in excess of 1.6 million Canadians.

Mogo, which is now the largest shareholder of WonderFi – owning approximately 14% – is a leading fintech company in Canada. The firm operates MogoTrade for commission-free stock trading and Moka for automated, fully-managed flat-fee investing. Mogo also offers a digital payments platform via Carta Worldwide.

Last year, Mogo launched its venture capital arm to manage its existing investments in strategic partners and companies that support Mogo’s ecosystem, including its stakes in crypto companies such as Coinsquare, Gemini, NFT Trader, and Tetra Trust.

Investments also include gaming companies (Enthusiast Gaming and Eleven Gaming), Bitcoin, and Ether. In addition, Mogo Ventures will manage the firm’s portfolio of legacy investments, including its investments in Hootsuite, Blue Ant Media, and Alida, with a focus on monetizing these investments.

It was in January 2022 that Mogo acquired a stake in NFT Trader, a Canadian company that operates a secure peer-to-peer OTC trading protocol for non-fungible tokens or NFTs. Mogo’s initial investment is through a convertible note which, if converted, will represent a 25% interest in NFT Trader. The company has an option to acquire an additional 25% interest through a secondary purchase of common shares from the founders within six months of the initial investment.

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