Canadian crypto market WonderFi finished the acquisition of trading platform CoinBerry and said they are open to more deals for companies that were hit by the crypto winter so let’s read more today in our cryptocurrency news.
The crypto market WonderFi finished its $30 million acquisition of CoinBerry on Monday after being admitted to the Toronto Stock Exchange last week. The shares also increased by 9% since the opening. The deal was approved by Competition Bureau Canada, Ontario Securities Commission, and other regulatory boards. WonderFi said it could purchase other companies with the shakeout in the sector is prolonged. CEO Ben Samaroo said that he thinks other nonregulated trading platforms could have similar issues like Voyager Digital which had exposure to Three Arrows Capital and limited its withdrawals.
WonderFi started looking at potential deals for exchanges that are not regulated in Canada and globally. Samaroo noted in a statement:
“This acquisition further solidifies WonderFi as a leader amongst crypto companies in Canada, and along with our acquisition of Bitbuy, establishes a great foundation for our expansion into global markets. Further, as we’ve seen over the past few weeks, the crypto market downturn has had a massive impact on the viability of unregulated crypto trading platforms and WonderFi’s value proposition as one of the few regulated crypto businesses makes us well-positioned to continue our growth.”
The purchase follows a 20% staff reduction at BitBuy and Wonderfi and the job cuts were made to lower down costs and deliver shared services across compliance, product engineering, and customer service. Wonderfi houses central finance and DEFI but also NFT tokens and play-to-earn gaming all under one umbrella. The Canadian businessman Kevin O Leary is a strategic investor in the company.
As previously reported, Canada’s market remains fragmented and consolidation is the key for the company as per CEO Ben Samaroo WonderFi plans to expand globally the year while diversifying the offerings of the digital asset products. Samaroo noted that WonderFi is in the process of expanding the brand into Australia while looking at a US Expansion later this year. To round out the product offerings, Wonderfi announced more plans to buy the game developer Sun Machine Entertainment for $13.5 million as it was trying to gain exposure and NFTs but the deal is also expected to close during Q2
