WonderFi, a leading technology company backed by Canadian billionaire Kevin O’Leary, has secured crypto exchange Bitbuy into its clutch, expanding its track record.
WonderFi settled to pay nearly $162 million, 206 million in Canadian dollars, to obtain the parent company of Bitbuy First Ledger Corp. As per WondeFi’s official statement, its goal is to become an end-to-end consumer platform for DeFi and crypto.
Bitbuy, founded in 2016 and based out of Canada has achieved significant growth since their inception. The company was licensed by the Ontario Securities Commission last November with 375,000 users who have transacted over $3 billion dollars through this platform alone. Bitbuy had made a revenue of more than $24 million in 12 months ending September 20, 2021.
The deal will see WonderFi fund their acquisition by issuing 70 million new shares and paying $15.7 million in upfront cash as well as providing an additional 23 months worth of financing through a vendor take-back note due next year.
The announcement states, “WonderFi will retain substantially all current Bitbuy employees and enter into employment agreements with key members of the management team.”
“The integration of Bitbuy’s product suite will accelerate and expand the reach and scope that WonderFi can offer to the market, and will drive long-term growth and value for the company,” Ben Samaroo, CEO at WonderFi, says, emphasizing the significance of a licensed marketplace.
The acquisition would allow the two companies to “have the bandwidth, assets and licenses to provide an institutional-grade compliant crypto platform to investors interested in exposure to centralized and decentralized financial services,” remarks Kevin O’Leary.
Kevin O’ Leary is not one to shy away from a good investment opportunity. He believes that stablecoins will be an effective hedge against rising levels of inflation, and if they’re regulated more precisely he’ll increase his allocation even further.