WonderFi Subsidiary Bitbuy Acquires Bitvo, Owns Nearly Half of All Exchanges in Canada
Bitbuy, a subsidiary of Canadian-based technology company WonderFi, announced its acquisition of Bitvo Inc. on the morning of Wednesday, November 15th, making WonderFi the owner of nearly 50% of all regulated crypto-trading platforms in the North American country.
WonderFi continues to dominate the market
“We are excited to welcome Bitvo’s clients to the WonderFi ecosystem,” said WonderFi President and Chief Executive Officer, Dean Skurka. “The acquisition of Bitvo’s clients represents a non-dilutive acquisition for WonderFi, with immediate cash flow, increased scale, and an expected payback period of less than six months.”
According to a press release, WonderFi has now consolidated five out of eleven of the country’s regulated crypto exchanges, including Coinberry, CoinSmart, and Coinsquare. Currently, Bitvo has over 17,000 client accounts, generating over $235 million in trading volume within this past year. As of last month, the company generated over $35 million from trading volume on the exchange alone.
“This acquisition also accelerates our growth efforts, and diversifies our client profile with Bitvo’s strong institutional client base,” stated Mr. Skurka. “We look forward to working with the Bitvo team to ensure a smooth transition.”
A trillion-dollar market
News of the acquisition follows a report by Chainalysis revealing transfers in the North American cryptocurrency market between July 2022 and July 2023 topped approximately $1.2 trillion, making up nearly a quarter of all crypto transactions globally.
At present, WonderFi has over 1.6 million Canadian users as well as $875 million worth of assets under their custody. As part of its acquisition, Bitvo client accounts will receive added benefits and services, such as regulated staking.
“We look forward to joining forces with Bitbuy and having Bitvo’s clients continue to enjoy the same great experience provided by Bitvo,” said Jeffrey Smith, Chairman of the Board of Bitvo.
“We chose to partner with Bitbuy due to our longstanding relationship with the Bitbuy team and their commitment to providing an overall great crypto trading experience,” Pamela Draper, President and Chief Executive Officer of Bitvo, added.
WonerFi’s acquisition of Bitvo coincides with an expanding interest in the sector across the Great White North. According to data from the Ontario Securities Commission, an estimated 30% of Canadians are looking to dive into the crypto world within the next 12 months.
Most recently, the crypto exchange Coinbase launched in Canada in August, citing the country “as the world’s third-most crypto-aware nation.”
“Canada boasts an enthusiastic local tech ecosystem that, combined with its strides towards a robust regulatory framework, positions it as a potential global crypto economy leader,” the exchange platform stated.