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Mogo Acquires 20% Shares in Coinsquare Worth CAD $56.4M

Mogo Acquires 20% Shares in Coinsquare Worth CAD $56.4M
  • Mogo strategically invested $56.4 million CAD to buy under 20% of Coinsquare’s shares.
  • Moreover, the company can also acquire an additional 20% ownership interest.
  • Cryptocurrency offerings in Canada are booming.

Vancouver-based fintech firm Mogo announced its strategic investment to buy just under 20% of CoinSquare’s shares. This is worth about $56.4 million CAD ($44.5 million).

Additionally, the Agreement includes rights for Mogo to acquire an additional 20% ownership interest in Coinsquare through purchases of shares from current shareholders and the exercise of warrants. In particular, this can be valued between $250-350 million CAD.

As a matter of fact, this recent investment builds on a multi-year relationship between the two Canadian companies. Coinsquare also 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.

CEO of Mogo David Feller said,

”We’ve had a relationship with Coinsquare for nearly three years and built strong familiarity with their team and platform, which we view as the most robust trading platform in Canada for digital assets.”

News of the investment comes only days after Coinsquare launched its crypto trading app Quick Trade. Here, Canadians can buy, sell, and trade digital assets through an app with no commissions.

In response to the acquisition, Board Member of Coinsquare  Jason Theofilos also explained,

”By leveraging Mogo’s digital wallet capabilities and base of more than one million members, combined with our deep crypto trading capabilities, we see significant opportunities to accelerate the growth of both businesses.”

By and large, if those additional shares are purchased, Mogo could own up to 40% of Coinsquare. Despite signing a definitive agreement, the deal is still subject to regulatory approval.

Generally, in Canada, cryptocurrency offerings are booming. Last summer, the Wealthsimple crypto platform is the first regulated crypto exchange operating in the nation. Now, the Ontario Securities Commission (OSC) approved North America’s first publicly-traded bitcoin exchange-traded fund (ETF), Purpose Bitcoin ETF.

An aspiring journalist who spills her ideas in cryptocurrency and blockchain-related matters. With her background in Communication and Journalism, she is more inclined to write about reality than fiction.