WonderFi Technologies (TSX: WNDR) continues to consolidate that Canadian crypto landscape, announcing this morning that its subsidiary Bitbuy Technologies has acquired all of the client accounts of Bitvo Inc, as well as the associated domain name of Bitvo.
Bitvo, a Calgary-based crypto trading platform, is registered as a restricted dealer within all the provinces and territories of Canada, and reportedly has over 17,000 client accounts. The company claims to have generated over $235 million in trading volume in the last twelve month, resulting in net revenue of $1.5 million.
The transaction was completed through an asset purchase agreement, the details of which were not provided. The purchase however consisted of an upfront pre-payment to Bitvo, and a 50% net revenue share from client accounts will be provided to the sellers, up to certain undisclosed net revenue maximums.
The operations and corporate liabilities of Bitvo were not acquired as part of the transaction.
Bitvo clients meanwhile will be migrated to the Bitbuy platform, with no action required on their end.
“The acquisition of Bitvo’s clients represents a non-dilutive acquisition for WonderFi, with immediate cash flow, increased scale, and an expected payback period of less than six months. This acquisition also accelerates our growth efforts, and diversifies our client profile with Bitvo’s strong institutional client base. We look forward to working with the Bitvo team to ensure a smooth transition,” commented Dean Skurka, CEO of WonderFi.
WonderFi Tech last traded at $0.14 on the TSX.
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