Quick take:
- The all-cash deal follows recent crypto M&As including Coinbase’s $2.9 billion acquisition of Deribit and Ripple’s $1.25 billion purchase of Hidden Road.
- Last year, Robinhood also acquired crypto exchange Bitstamp in a $200 million deal.
- WonderFi’s crypto brands include Bitbuy and Coinsquare and in 2024 processed C$3.47 billion in crypto trading volume.
U.S. no-fee brokerage company Robinhood Markets, Inc. (HOOD) has announced the acquisition of the Candian stock exchange-listed crypto firm WonderFi in a deal worth C$250 million, approximately $179 million.
The all-cash acquisition was completed at 36 Canadian cents per share, placing a 41% premium on the WonderFi Technologies Inc. (WNDR.TO) stock’s closing price on Monday.
This is the latest acquisition in the crypto space following Coinbase’s $2.9 billion acquisition of Deribit and Ripple’s $1.25 billion purchase of Hidden Road. In March, crypto exchange platform Kraken agreed to acquire futures trading platform NinjaTrader in a deal worth $1.5 billion.
This is not Robinhood’s first major crypto acquisition in recent times, with the retail brokerage platform buying crypto exchange Bitstamp last year in a $200 million deal.
Its acquisition of WonderFi comes amid increasing optimism in the crypto market as several governments move to create a clear regulatory framework.
The acquisition also accelerates Robinhood’s global expansion, with WonderFi’s crypto brands Bitbuy and Coinsquare having processed c$3.57 billion in crypto trading volume last year.
Commenting on the acquisition, Senior Vice President and General Manager of Robinhood Crypto said WonderFi’s focus on both “beginner and advanced crypto users” makes it an “ideal partner”.
WonderFi employees will be joining the Robinhood team, which already has over 140 staff members based in the North American country.
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