Robinhood strikes $178M deal to purchase Canada's crypto powerhouse WonderFi

Key Takeaways

Robinhood will purchase WonderFi in a $178 million all-cash deal.
The acquisition expands Robinhood’s presence in Canada’s digital asset market.

In style buying and selling platform Robinhood Markets introduced Tuesday it had reached an settlement to purchase WonderFi, one in all Canada’s largest regulated crypto buying and selling ecosystems, for $250 million CAD (roughly $178 million) in money.

The deal, which represents a 41% premium to WonderFi’s final closing share worth and 71% above its 30-day common, will give Robinhood a significant foothold in one of many world’s fastest-growing digital asset markets and is a part of the corporate’s ongoing push to construct a worldwide monetary ecosystem.

WonderFi operates Bitbuy and Coinsquare, two key exchanges in Canada, which collectively handle over $2.1 billion CAD in consumer belongings beneath custody. WonderFi additionally has the biggest person base of crypto members in Canada, with roughly 1.6 million energetic customers throughout its platforms.

“WonderFi has constructed a formidable household of manufacturers serving newbie and superior crypto customers alike, making them a perfect companion to speed up Robinhood’s mission in Canada,” stated Johann Kerbrat, SVP and GM of Robinhood Crypto, in an announcement.

Dean Skurka, WonderFi’s President and CEO, stated, “WonderFi and Robinhood are united in our visions of creating crypto accessible and bringing extra individuals into the crypto area. We’re delighted to be becoming a member of the Robinhood staff and to super-charge our product choices for patrons.”

Robinhood established its Canadian headquarters in Toronto in 2024, and the corporate plans to retain WonderFi’s management staff and proceed working its platforms after the deal closes. WonderFi workers will be part of Robinhood’s rising presence in Canada, the place greater than 140 workers are already primarily based.

The transaction is anticipated to shut within the second half of 2025, topic to regulatory approvals, court docket approval, and WonderFi shareholder approval.

The transfer follows Robinhood’s $200 million acquisition of Bitstamp introduced final June, the corporate’s largest deal thus far. Bitstamp is taken into account a key world participant within the crypto area, with a robust footprint throughout Europe and Asia.

Earlier this month, Robinhood reported complete revenues of $927 million in Q1, down 8.6% from the earlier quarter, however nonetheless exceeding Wall Avenue’s expectations.

The platform’s crypto income dropped almost 30% quarter-over-quarter, and buying and selling quantity in crypto additionally fell 35%, largely as a result of market cap declines triggered by Trump’s tariff agenda. Nonetheless, on a year-over-year foundation, Robinhood’s crypto income doubled, and buying and selling volumes elevated by 28%.