Robinhood Markets announced Tuesday it wants to acquire Canadian cryptocurrency firm WonderFi Technologies for approximately 250 million Canadian dollars ($179 million) in an all-cash transaction, marking its latest expansion into international markets amid growing consolidation in the cryptocurrency sector.
What to Know:
- WonderFi operates two regulated Canadian crypto trading platforms managing over C$2.1 billion in assets
- Robinhood will pay a 41% premium over WonderFi's last closing price on the Toronto Stock Exchange
- The acquisition continues a wave of crypto industry mergers in 2025 following regulatory shifts
The financial technology company, known primarily for its commission-free trading app, will pay 0.36 Canadian dollars per share for WonderFi, representing a substantial 71% premium over the target company's 30-day volume-weighted average price. This acquisition builds upon Robinhood's previous expansion efforts, including its $200 million purchase of cryptocurrency exchange Bitstamp in 2024.
"WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood's mission in Canada," said Johann Kerbrat, senior vice president and general manager of Robinhood Crypto, in the company's announcement.
WonderFi operates Bitbuy and Coinsquare, described as two of Canada's longest-standing regulated cryptocurrency trading platforms.
These services offer users cryptocurrency trading, staking capabilities, and custody services, potentially complementing Robinhood's existing offerings as it seeks to expand its geographic reach beyond the United States.
The acquisition, expected to close in the second half of 2025, remains subject to customary closing conditions. These include regulatory approvals, court authorization, and approval from WonderFi's shareholders, according to the company's statement.
Crypto Industry Consolidation Accelerates
The transaction occurs amid a surge of merger and acquisition activity throughout the cryptocurrency sector in 2025. Industry observers attribute this consolidation wave partly to a more favorable regulatory environment under President Donald Trump's administration.
Several major deals have already been announced this year, demonstrating the industry's rapid consolidation. Coinbase, one of the largest cryptocurrency exchanges, acquired derivatives platform Deribit for $2.9 billion, while blockchain company Ripple purchased institutional trading firm Hidden Road for $1.25 billion.
Cryptocurrency exchange Kraken completed its acquisition of futures trading platform NinjaTrader on May 2. This strategic move allows Kraken to expand its customer base while enabling it to offer cryptocurrency futures and derivatives products in the United States market.
WonderFi reported strong performance metrics prior to the acquisition announcement.
The Canadian company processed 3.57 billion Canadian dollars in trading volume during 2024, representing a 28% increase from the previous year despite challenging market conditions. Before the deal announcement, WonderFi's market capitalization stood at 163.9 million Canadian dollars, with its stock down 13.6% year-to-date on the Toronto Stock Exchange.
Robinhood has been aggressively expanding its cryptocurrency offerings and geographic footprint. On May 7, reports emerged that the company is developing a blockchain network that would enable European retail investors to trade U.S. securities, further demonstrating its international ambitions.
The latest acquisition appears strategically aligned with Robinhood's broader expansion plans. By acquiring WonderFi, the company gains immediate access to established regulatory frameworks and customer bases in the Canadian market, potentially providing a template for further international growth.
Closing Thoughts
The WonderFi acquisition represents Robinhood's continuing strategy to diversify beyond its core U.S. brokerage business through cryptocurrency expansion and international growth. As regulatory frameworks evolve globally, the company appears positioned to capitalize on emerging opportunities while the broader cryptocurrency industry experiences significant consolidation.