Robinhood buys WonderFi: crypto explosion by 35.3 percent!

Robinhood buys WonderFi: crypto explosion by 35.3 percent!

Shares of Canadian crypto company WonderFi Technologies (WNDR) saw a 35.3 percent increase today, reaching C$0.35. The reason for this uptick is Robinhood's announcement that it would acquire the company for approximately C$250 million (US$179 million). With this acquisition, Robinhood aims to expand its international presence and grow particularly in the crypto space.

WonderFi, which is based in Vancouver, operates crypto exchanges Bitbuy and Coinsquare. These platforms collectively manage more than $2 billion in client assets, highlighting their importance in the Canadian crypto market. Robinhood has described the acquisition as a strategic move to expand its market share outside the US.

Strategic relevance of the takeover

The purchase comes as Robinhood seeks to refocus more on other business areas. In the first quarter, the broker reported revenue of $927 million, which represents a slight decrease compared to the previous quarter. Of particular note is the sharp 30 percent decline in crypto revenue to $252 million. Trading volume on the platform also fell to $46 billion from $71 billion in the fourth quarter, highlighting the need for diversification.

Robinhood also plans to launch its own blockchain for trading tokenized assets in the EU, where the company established its crypto trading last year. These moves show that Robinhood is looking to reposition itself in the increasingly competitive crypto market.

Shareholder compensation and market reaction

As part of the acquisition, WNDR shareholders will receive a cash payment of 36 Canadian cents per share, a 41 percent premium to the previous closing price. Despite the rise in share prices, WNDR shares are down 13.6 percent year-over-year, reflecting the challenges the company is facing.

WonderFi’s focus on a broad user base consisting of both “beginners and advanced crypto users” is seen as a key advantage. The company is supported by prominent personalities such as Kevin O’Leary, who is considered a supporter of the crypto industry.

In summary, with this acquisition Robinhood not only wants to strengthen its market presence, but also initiate important technological developments in order to remain competitive in the global crypto market. TradingView reports that This acquisition represents a significant step for Robinhood while BTC-ECHO notes that Crypto trading is seen as a strategic segment for the future of the platform.