Vancouver fintech Mogo (TSX:MOGO) has been slowly acquiring more and more of Coinsquare, Canada’s leading digital asset trading platform for Bitcoin, Ethereum and other cryptocurrencies.
Three months ago Mogo acquired 20 percent of Coinsquare. Last month Mogo nearly doubled its stake, increasing its ownership in to approximately 37 percent.
Today Mogo announced it would be exercising a purchase warrant in Coinsquare that will increase its total ownership interest to approximately 48 percent.
But they’re not done yet.
Mogo still has another option to acquire an additional 3.4 percent of the outstanding Coinsquare shares within 120 days of today’s acquisition. This final transaction will increase Mogo’s total ownership in Coinsquare to approximately 53 percent.
“Coinsquare is the leading crypto trading platform in Canada and a highly valuable asset in the Canadian fintech ecosystem,” said Greg Feller, President of Mogo. “They continue to perform very strongly, growing both their revenue and EBITDA rapidly in 2021. The company generated record monthly revenue of $8.0 million in April, and May’s performance is expected to exceed that high mark.”
“In addition to the financial merits of our investment, this is a great fit strategically and supports our objectives to build the most comprehensive digital wallet in Canada, including a range of investing and saving options and a free stock trading solution. By leveraging Coinsquare’s leading crypto capabilities, along with Mogo’s leading digital wallet capabilities, we are well positioned to execute on our growth plans.”
Coinsquare acts as the trading platform for MogoCrypto, a service Mogo launched in 2018 to allow its members an easy and convenient way to buy and sell bitcoin.
Launched in 2014, Coinsquare has grown to become the leading digital asset trading platform in Canada.
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