WonderFi confirms ‘preliminary’ discussions about potential mergers
Stephanie Hughes
Financial Post
One of the potential suitors is Canadian cryptocurrency exchange Coinsquare
The price of bitcoin fell 67 per cent from its November 2021 peak to $25,900 in recent weeks. Photo by Dado Ruvic/Reuters/Illustration/File Photo
Vancouver-based WonderFi Technologies Inc. says it has held merger discussions with various third parties, but that it will not identify them.
BNN Bloomberg reported that one of the potential suitors was Canadian cryptocurrency exchange Coinsquare, a deal that would create a Canadian crypto giant if it were to go through.
WonderFi confirmed in a Jan. 12 statement that it has held discussions both as a potential acquirer and target.
“The Company acknowledges that it has held preliminary discussions with various third parties with respect to both potential acquisitions and the Company being acquired,” the statement read. “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.”
Shares of WonderFi surged over 20 per cent following the news on Jan. 12 and topped out at $0.41 the following morning before easing somewhat.
WonderFi, a Kevin O’Leary-backed crypto firm, was on an acquisition spree last year, scooping up other Canadian crypto companies such as Coinberry and Bitbuy Technologies Inc.
But over the past two years, the cryptocurrency sector was hit with its worst downturn since 2018 as the price of bitcoin fell 67 per cent from its November 2021 peak to $25,900 in recent weeks.
The slump worsened amid the fallout of the FTX exchange collapse, which has brought accusation of one of the largest financial frauds in U.S. history against the company’s founder Sam Bankman-Fried. O’Leary told CNBC anchors that FTX had paid him US$15 million to act as a spokesperson though he had lost the funds as crypto prices plummeted.
© 2023 Financial Post