Robinhood Drops $178M Cash Bomb on Canadian Crypto Giant WonderFi!

Hang onto your hats, crypto fans! Robinhood just flexed its financial muscles, snagging Canadian crypto powerhouse WonderFi for a cool C$250 million (that's US$178 million to you and me). This all-cash deal is Robinhood's latest power move to expand its crypto empire across the globe.

By gobbling up WonderFi, Robinhood now has its hands on over C$2.1 billion in assets and is diving headfirst into one of the world's hottest crypto markets. Talk about a game-changer!

WonderFi isn't just any crypto firm; it runs two of Canada's top regulated platforms, Bitbuy and Coinsquare. And guess what? They'll keep on truckin' under the Robinhood Crypto banner.

WonderFi shareholders are popping champagne, set to pocket C$0.36 per common share. That's a whopping 41% premium over the stock's May 12 closing price and a 71% jump from its 30-day average. Cha-ching!

Mark your calendars: this blockbuster deal is slated to close in the second half of 2025, pending the usual shareholder and regulatory nods.

Changes in leadership

Once the ink dries, WonderFi's bigwigs, including CEO Dean Skurka, will join the Robinhood Crypto crew and keep steering the ship in Canada. And get this—WonderFi's team will merge with Robinhood's existing 140-strong Canadian squad in Toronto.

"WonderFi has built a beast of a brand family, catering to everyone from crypto newbies to pros. They're the perfect partner to turbocharge Robinhood's mission in Canada," gushed Johann Kerbrat, GM of Robinhood Crypto.

Robinhood's been on a roll, beefing up its crypto game. Remember that $200 million Bitstamp buyout in 2024? Yeah, this WonderFi deal is just the next big step in that master plan.

With WonderFi in its pocket, Robinhood is gearing up to serve Canadian retail investors with a full menu of crypto goodies—trading, staking, custody, you name it.

WonderFi's no slouch either, boasting 1.6 million users across its platforms and raking in over C$3.57 billion in trading volume in 2024. That's a 28% spike from the year before! They went public in 2021 via a reverse takeover and have been climbing the ranks ever since, becoming one of Canada's leading crypto providers.

Robinhood's pulling this off with cash on hand, and they've got J.P. Morgan in their corner as their exclusive financial advisor. WonderFi's got FT Partners and a whole team of legal and financial gurus backing them up.