Crypto exchange WonderFi, which is backed by crypto investor and billionaire Kevin O’Leary, has confirmed that it is in preliminary talks with fellow Canadian crypto exchange Coinsquare for a possible merger.
In a January 12 statement, WonderFi responded to a Bloomberg report suggesting that the two exchanges were in “advanced merger talks” to “create a Canadian crypto giant.”
WonderFi said discussions were “preliminary” at this stage, adding that it cannot guarantee an agreement will be reached.
“In response to press speculation, the Company acknowledges that it has held preliminary discussions with various third parties regarding both potential acquisitions and the Company being acquired, which is consistent with past practices and the overall strategy of acquisition of the Company.”
“These discussions are preliminary in nature and are ongoing, and no assurance can be given that an agreement or agreements will be reached, or that the terms of a transaction will be agreed or that a transaction will be completed,” a- he declared.
WonderFi is a crypto exchange headquartered in Vancouver, Canada.
Coinsquare is also a crypto exchange operating in Canada and based in Toronto. A Bloomberg report on January 12, said that although Coinsquare does not disclose assets under management, it is estimated to have 500,000 users on its platform.
A potential merger of the two could see the combined entity serve 1.15 million users, making it the largest exchange in Canada.
WonderFi is one of the few publicly traded exchanges in Canada and has seen its share price rise nearly 30% in the past 24 hours following press speculation of a merger.
News of the two exchanges’ potential merger comes just days after Coinsquare terminated an agreement for acquire all outstanding shares for a subsidiary of Canadian crypto exchange CoinSmart, in a deal announced by CoinSmart on Sept. 22, they would receive $3 million in cash and more than $26 million in Coinsquare stock as payment.
WonderFi also had a busy year of acquisitions in 2022, announcing on January 4 that they would acquire fellow Canadian crypto exchange Bitbuy’s parent company for $162 millionbefore that continues its Canadian expansion by acquiring crypto exchange Coinberry for $38 million on April 18.
Both acquisitions have since been finalized.
In an interview at the time, O’Leary mentioned that there would be “several other, even bigger acquisitions” in the works.
It’s just recently acquired North American blockchain development company Blockchain Foundry on September 1, 2022, which recently launched a non-fungible technology (NFT) minting platform and marketplace, in addition to a learning platform Web3.