Robinhood to Acquire Kevin O’Leary-Backed WonderFi
Robinhood plans to enter the Canadian crypto market by acquiring WonderFi for $179 million in cash. WonderFi operates crypto exchanges Bitbuy and Coinsquare and is backed by Kevin O’Leary. This acquisition marks a significant step for Robinhood, which has primarily focused on European expansion. WonderFi holds $2.1 billion in assets under custody, while Robinhood manages $27.4 billion in cryptocurrencies for users. Analysts suggest this move could lead to $250 million in annual revenue for Robinhood in Canada. Following the announcement, Robinhood's stock rose 6.4%, while WonderFi's shares increased by 34%. Robinhood reported a profit of $336 million on $927 million in revenue for Q1, with its crypto segment generating $253 million in transaction-based revenue. The company is also set to finalize its $200 million acquisition of Bitstamp soon.
