The exchanges have yet to negotiate a proposed merger, with WonderFi responding to market speculation and a rising share price with a public statement.
WonderFi, funded by crypto investor and millionaire Kevin O’Leary, has announced that it is in exploratory talks with fellow Canadian crypto exchange Coinsquare about a prospective merger.
WonderFi issued a statement on January 12 in response to a Bloomberg article that the two exchanges were in “advanced merger talks” to “form a Canadian crypto powerhouse.”
WonderFi reiterated that the conversations are “preliminary” at this point, and that no agreement can be guaranteed.
“In response to press speculation, the Company acknowledges that exploratory negotiations have taken place with various third parties regarding both potential acquisitions and the Company being acquired, which is consistent with past practise and the Company’s overall acquisition strategy.”
“These negotiations are preliminary in nature and ongoing, and no assurance can be provided that any agreement or agreements will be reached, or that the terms of a transaction will be agreed upon, or that a deal will be completed,” the statement stated.
WonderFi is a cryptocurrency exchange based in Vancouver, Canada.
Coinsquare, situated in Toronto, is another Canadian crypto exchange. According to a Bloomberg story on Jan. 12, Coinsquare has 500,000 users on its platform despite not disclosing assets under management.
A merger of the two might result in the combined business serving 1.15 million subscribers, making it Canada’s largest exchange.
WonderFi is one of Canada’s few publicly traded exchanges, and its share price has risen about 30% in the last 24 hours as a result of press speculation about a merger.
The potential merger of the two exchanges comes just days after Coinsquare terminated an agreement to acquire all outstanding shares for a subsidiary of Canadian crypto exchange CoinSmart, in a deal announced on September 22 that would see CoinSmart receive $3 million in cash and over $26 million in Coinsquare shares as payment.
WonderFi also had a busy year of acquisitions in 2022, revealing on Jan. 4 that they would be acquiring the parent firm of fellow Canadian crypto exchange Bitbuy for $162 million, then continuing its Canadian growth by acquiring crypto exchange Coinberry for $38 million on Apr. 18.
Both deals have since been completed.
In an interview at the time, O’Leary stated that “many more and even bigger” acquisitions were on the horizon.
On September 1, 2022, it purchased North American blockchain development startup Blockchain Foundry, which recently created a nonfungible technology (NFT) minting platform and marketplace, as well as a Web3 learning platform.