Kevin O'Leary-backed decentralized finance (DeFi) platform WonderFi Technologies is increasing its footprint in Canada by purchasing the country's first regulated cryptocurrency exchange.
Target? Be the number 1
WonderFi has agreed to pay nearly 206 million Canadian dollars (162 million dollars) to acquire First Ledger Corp, the parent company of BitBuy. WonderFi aims to become an end-to-end consumer platform for crypto and DeFi, according to the official announcement.
Founded in 2016, Bitbuy has become a fully regulated crypto exchange in Canada after being licensed by the Ontario Securities Commission last November. The platform has over 375.000 users who have transacted more than $ 3,4 billion. The announcement claims that Bitbuy generated over $ 24 million in revenue in the twelve months ending September 30, 2021.
Details of the transaction revealed that WonderFi would fund the acquisition by issuing 70 million new shares and paying $ 15,7 million in cash upfront and $ 23 million in cash deferred via a vendor-takeback note due over 12 months. . "WonderFi will retain substantially all of Bitbuy's current employees and enter into working arrangements with key members of the management team," the announcement reads.
From former critic to Bitcoin supporter
Highlighting the importance of a licensed marketplace as a gateway to the digital goods economy, WonderFi CEO Ben Samaroo said:
"The integration of Bitbuy's suite of products will accelerate and expand the scope and scope WonderFi can offer to the market, and will drive growth and long-term value for the company."
Kevin O'Leary, a former Bitcoin critic (quotation BTC) who has turned into a cryptocurrency advocate, commented that the acquisition would allow the two teams to “have the bandwidth, assets and licenses to provide an institutionally compliant crypto platform to investors interested in exposure. to centralized and decentralized financial services. "
In an exclusive interview with Cointelegraph, the Shark Tank celebrity said that if stablecoin regulations become more precise, he would be ready to increase his crypto allocations by up to 20%. O'Leary is more interested in stablecoins pegged to the US dollar, as he sees them as an effective hedge against rising inflation.