Robinhood takes over Wonderfi Technologies in a bar business worth $ 178 million-Mugglead Investment Magazine
Robinhood Markets Inc. (NASDAQ: HOOD) expands in the Canadian markets by taking over the cryptocurrency exchange for $ 178,98 million. WonderFi Technologies Inc. (TSE: WNDR) (OTCMKTS: WONDF) (WKN: A3C166).
Due to the complete takeover, Wonderfi's course is 36 Canadian cent per share, which corresponds to a surcharge of 41 percent compared to the closing price before the announcement on Tuesday.
Robinhood, known for the democratization of investing in the USA, has made innovative and accessible financial products available for millions of investors. The company builds up a global financial ecosystem, the crypto products of which are already available in selected EU countries. In addition, Robinhood has a strong track record in the implementation of global transactions and acts as a credible counterpart. The purchase should also be financed with cash.
“Wonderfi has built up an impressive brand family that serves both beginners and advanced crypto users, which makes them an ideal partner to drive Robinhood's mission in Canada,” said Johann Kerbrat, head of Robinhood Crypto, in the official announcement.
Robinhood is a popular commission-free brokerage platform. The company has long been aiming for an international expansion and concluded an agreement last year to assume the cryptocurrency exchange Bitstamp. The latest acquisition aims at Canadian customers. The company Wonderfi, listed in Toronto, has and operates Bitbuy and Coinsquare, two leading crypto platforms in Canada.
In addition, Wonderfi reported an increase in the commercial volume by 28 percent and reached 3,57 2024 billion CAD in the financial year.
The company will continue its products even after the agreement has been concluded. The management team will switch to Robinhood Crypto and have experience in providing digital asset products for Canadian customers. The current Wonderfi employees become part of the Canadian Robinhood team, which already includes over 140 employees.
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Robinhood famous for Wall Street bets
Most people remember Robinhood due to his role in the market vertebra in 2021 in connection with Wall Street Bets (WSB).
WSB is a popular subreddit that was founded in 2012 and in which private investors share high-risk stock and option transactions, often with a meme humor.
At the beginning of 2021, it received worldwide attention when the members coordinated, to be very empty -selling stocks such as GameStop (NYSE:GME) and AMC Theater, which triggered a “short squeeze”. Hedge funds that speculated against these shares suffered massive losses, while some private investors made enormous profits. The WSB movement was driven by a mixture of anti-establishment mood, frustration over institutional investors and belief in the power of the collective retail trade.
Robinhood played a central role in the WSB saga. As a preferred trade app of many WSB users, Robinhood private investors enabled the commission-free purchase and sale of shares. The user-friendly interface, the possibility of buying and selling equity fractions, and the widespread mobile access ensured a strong increase in participation at the peak of the Gamestop rally.
At the end of January 2021, however, Robinhood was faced with counter-reactions when it restricted the trade with some of the most volatile WSB shares. This step triggered outrage among users, celebrities and politicians who accused the platform to support institutional interests. Robinhood justified the restrictions with the deposit requirements of the clearing point. The controversy also led to hearings in the congress and a review of the market infrastructure and the payment practices for order flows.
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