Robinhood expands into Canada with WonderFi acquisition
- Robinhood has agreed to acquire WonderFi for US$179 million, marking its entry into Canada.
- The acquisition deal values WonderFi at CA$0.36 per share, a 41% premium.
- The deal includes the acquisition of Bitbuy and Coinsquare platforms.
Robinhood Markets has announced that it has agreed to acquire Vancouver-based WonderFi Technologies in an all-cash transaction valued at US$179 million, marking the retail brokerages official entry into the Canadian cryptocurrency market.
Under the terms of the deal, WonderFi shareholders will receive C$0.36 per share, representing a 41% premium over the firms closing price before the announcement, in a transaction that values the Canadian firm at approximately C$250 million.
Investors have responded positively to the news, sending Robinhood shares up 6.4% to trade around $61 on Wednesday, while WonderFis stock on the Toronto Stock Exchange jumped 34% to C$0.24, highlighting the markets enthusiasm for cross-border crypto consolidation.
Veteran investor Kevin OLeary, a prominent backer of WonderFi and Shark Tank personality, praised the acquisition as a testament to WonderFis picks and shovels approach, which focuses on durable infrastructure rather than speculative token bets.
OLeary remarked in a recent interview that the proliferation of stablecoins and real-time settlement capabilities will play a more decisive role in cryptos mainstream adoption than volatility-driven price rallies.
Robinhoods entry into the Canadian market
Robinhoods expansion into Canada via WonderFi complements the companys mission to democratize finance for all, tapping into a market where retail crypto adoption continues to accelerate alongside growing mainstream interest.
The acquisition brings under Robinhoods umbrella two of Canadas most prominent crypto trading platforms, Bitbuy and Coinsquare, each of which has built a loyal user base since their respective inceptions.
By integrating WonderFis infrastructure and expertise, Robinhood gains immediate access to a market that saw over C$3.57 billion in trading volume on WonderFis platforms during fiscal 2024, reflecting a 28% year-over-year increase in activity.
All of WonderFis existing employees, whose ranks now exceed 140 professionals specialising in customer support and regulatory compliance, will transition to Robinhood, bolstering the US firms ability to navigate Canadas distinct financial oversight environment.
Notably, the acquisition follows Robinhoods announcement earlier this year that it expects to close its US$200 million purchase of Bitstamp, the Luxembourg-based crypto exchange, in the first half of 2025, further underscoring the companys global ambitions.
Robinhood is evolving beyond commission-free equities
The move underscores Robinhoods broader strategy to evolve beyond its origins as a commission-free equities trading app by cultivating a more diversified, borderless financial services ecosystem centred on digital assets.
Robinhoods Chief Executive Officer, Vlad Tenev, emphasised that the WonderFi acquisition represents a critical first step in establishing the companys Canadian presence, noting that the regions regulatory framework and investor adoption rates position it as a natural complement to Robinhoods existing markets.
Analysts at Mizuho predicted that a successful Canadian launch could ultimately contribute up to $250 million in incremental annual revenue, assuming Robinhood can leverage WonderFis local brand recognition and operational footprint.
Robinhoods Q1 2025 earnings report, released just days before the WonderFi deal, showcased a 50% surge in revenue to $927 million, driven in large part by a $252 million contribution from its crypto trading business.
The companys net income of $336 million for the quarter reflected a 114% increase year-over-year, positioning Robinhood among the most profitable US fintech platforms in an industry still grappling with regulatory uncertainty.
If executed smoothly, the acquisition could serve as a blueprint for Robinhoods future forays into other regulated markets, leveraging a playbook of acquiring established, locally compliant crypto services rather than building from scratch.
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