Crypto exchange WonderFi, supported by crypto investor and billionaire Kevin O’Leary, has entered into talks with Canadian crypto exchange Coinsquare over a potential merger, as reported by Cointelegraph.
According to Cointelegraph, WonderFi stated that the proceedings are at a “preliminary” position. It is believed that the exchange even mentioned that possibilities for an agreement are uncertain.
“In response to the press speculation, the Company acknowledges that it has held preliminary discussions with various third parties with respect to both potential acquisitions and the Company being acquired, which is consistent with past practice and the Company’s general acquisition strategy. These discussions are preliminary in nature and are ongoing, and no assurance can be given that any agreement or agreements will be reached, or that the terms of a transaction will be agreed upon or that a transaction will be completed,” WonderFi said.
On the basis of information by Cointelegraph, a probable merger among the two exchanges could result in the combined platform serving 1.15 million users, which could make it the largest Canadian crypto exchange. Reportedly, WonderFi witnessed around a 30% share price increase in the previous 24 hours post press developments of a merger. The update arrives after Coinsquare ended an agreement to get all the outstanding shares for a Canadian crypto exchange CoinSmart’s subsidiary. On January 4, 2023, WonderFi revealed its aim to takeover Canadian crypto exchange Bitbuy’s parent company for a value worth $162 million.
Moreover, Cointelegraph noted that in an interview, O’Leary specified that there would be ”several more and even bigger” acquisitions incoming. On September 1, 2022, WonderFi completed the acquisition of North American blockchain development firm Blockchain Foundry.
(With insights from Cointelegraph)