WonderFi, a crypto ecosystem backed by Kevin O’Leary, plans to acquire Toronto-based crypto exchange Coinberry. The acquisition is valued to be around $38.5 million and it’s only for 30% of the company’s activity, meaning just the exchange. Legally, the company will be split into 2 – Coinberry Canada and Coinberry. The latter will be merged with WonderFi at an undisclosed time.
According to Coinberry Canada, the main operation will remain in Kelowna, BC, and the Exchange feature will be restructured in the very near future.
If the deal closes, it will place two out of six registered crypto exchanges under the same management.
Kevin O’Leary’s second exchange acquisition in a month
The news of the acquisition was first published in The Globe and Mail. WonderFi acquired Toronto-based crypto exchange Bitbuy less than a month ago for $206 million in cash and shares.
The second acquisition will mark a more significant step toward the nationwide growth of digital assets and the blockchain sector.
Kevin O’Leary, who backs WonderFi, said in an interview that “several more and even bigger” acquisitions are to come. If the acquisition occurs, it will extend WonderFi to 160 staff members and over 750,000 customers.
He also added that they are doing it on a regulated basis, unlike the other players. He noted that they are not going to take any risks on that.
In early 2021, the Canadian Securities Administrators, a federation of provincial and territorial securities regulators, released guidance on regulating cryptocurrency exchanges. Since then, analogous legislation has been patched together across the country.
Despite several provincial and territorial markets being uncontrolled, many foreign crypto enterprises have continued to operate in the country.
O’Leary admits to being an early skeptic of Bitcoin and cryptocurrencies. However, he has become a firm believer over time, as he predicts that one-day blockchain and crypto will represent the 12th sector of the S&P 500. He also added personally that his crypto portfolio has taken over his gold portfolio.
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