WonderFi, the crypto exchange, has confirmed its plans to merge with Coinsquare. WonderFi released a public statement as a result of market speculation and a soaring share price in response to market speculation that the exchanges were considering a merger.
A Canadian Crypto Giant is Forming
After BNN Bloomberg reported that WonderFi Technologies Inc. was engaged in advanced merger talks with Coinsquare Ltd., according to sources familiar with the matter, the shares of WonderFi Technologies Inc. rose as high as 22 percent before briefly being halted Wednesday afternoon.
Following the halting of the company’s shares at 1:51 p.m. Eastern Standard Time, WonderFi released a statement confirming that it has held “preliminary discussions” with other companies regarding possible acquisitions. There was a resumption of trading in WonderFi stocks at 3:15 p.m. EST.
There are still some unknowns in terms of the exact terms of the merger between the two operators, but if such a deal were to go through, it would create the largest cryptocurrency exchange in Canada.
A possible scenario, one of the sources said, would see Coinsquare shareholders take a majority stake in the combined company and control a greater percentage of the board seats than WonderFi, as well as control more capital from the combined company.
According to the sources, it is possible that the discussions are at an advanced stage and an announcement could occur within the next few days, but there is no guarantee that an agreement will be finalized between the two companies.
There have been reports that Coinsquare is standing by its previously agreed-upon decision to acquire Coinsmart Financial Inc. A few days ago, Coinsmart Financial Inc. announced that Coinsquare would not go through with acquiring the company. In a statement released by Coinsmart on Monday, the company said its management and board of directors are evaluating Coinsquare’s decision to terminate its merger with Coinsmart, assessing “its validity and effectiveness”.
There is a possibility that the new merger can help the exchange grow faster and expand its target market more quickly. While the situation doesn’t look good for centralized exchanges at the current time, new mergers and expansions may be able to help some of them in the future. The outcome of this sector in the year 2023 is something we need to wait and see.