Bitbuy Technologies announced this week that it has purchased all of the client accounts of Bitvo Inc., a registered crypto-trading platform based in Calgary.
Bitvo was almost acquired by FTX last year. The prodigal FTX was expanding into the Canadian market before its high-profile collapse brought forth fraud and conspiracy charges against CEO Sam Bankman-Fried.
Instead, Bitbuy has acquired more than 17,000 client accounts of Bitvo, both retail and institutional—but has not assumed Bitvo’s operations or corporate liabilities as part of the transaction, according to a statement from the fintech.
The acquisition further builds on the web3 war chest of WonderFi, which has consolidated Bitbuy, Coinberry, Coinsquare, and CoinSmart in Canada.
“We are excited to welcome Bitvo’s clients to the WonderFi ecosystem,” stated WonderFi Chief Executive Officer Dean Skurka. “The acquisition of Bitvo’s clients represents a non-dilutive acquisition for WonderFi, with immediate cash flow, increased scale, and an expected payback period of less than six months.”
According to Skurka, the transaction accelerates WonderFi’s growth efforts and also diversifies the company’s client profile thanks to Bitvo’s strong institutional base.
“We look forward to working with the Bitvo team to ensure a smooth transition,” the CEO stated.
Pamela Draper, Chief Executive Officer of Bitvo, is also looking forward to joining forces.
“We chose to partner with Bitbuy due to our longstanding relationship with the Bitbuy team and their commitment to providing an overall great crypto trading experience,” said Draper.
With a collective user base of 1.6 million registered Canadians and a combined assets under custody exceeding $875 million, WonderFi boasts one of the largest communities of crypto investors in Canada.
Trading on the TSX as WNDR, shares in the web3 firm are down 35% over the past year, reflecting the temperature of a broader crypto winter.
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