Coinsquare is set to buy rival CoinSmart in a deal worth around C$29million to establish the company as one of Canada’s largest crypto asset trading platforms.
Following the acquisition and integration, CoinSmart will hold approximately 12 per cent ownership in Coinsquare on a pro-forma basis. The combined company has transacted more than $10billion since January 2018. It also has $350million in assets under custody with a combined user base in excess of one million.
CoinSmart has described the acquisition as an ‘exciting day’. Justin Hartzman, CEO of CoinSmart, said: “We are thrilled to be working alongside the Coinsquare team to build one of the largest regulated crypto asset trading platforms in Canada and I could not be more proud of what we have accomplished so far.
“With a diversified product suite, exceptional crypto talent, and one of the largest user bases in Canada, the combined company will be well-positioned to pursue its aggressive expansion plans. While the crypto market is in the building phase of its life cycle, this transaction will provide the torque needed to be in a favourable position entering the next bull run.”
Meanwhile, Coinsquare CEO Martin Pisze adds: “This acquisition represents a monumental and exciting milestone for both companies and brings together two industry leading management teams. We are excited to work together to shape how the crypto industry in Canada grows and evolves, and together we will be able to offer our clients the most innovative and secure products backed by the highest standards of regulation in the industry.”
The combined platform
The combined company will have transacted more than $10billion in crypto transactions since January 2018 and $350million in assets under custody. It will offer a diversified and regulated platform across trading, payments, asset management and digital asset custody. There will be trading for Bitcoin, Ethereum, Litecoin, and other digital assets.
The purchase price is subject to standard post-closing adjustments with closing of the transaction expected during the fourth quarter of 2022. CoinSmart has engaged Eight Capital as its financial advisor and Wildeboer Dellelce LLP as its legal advisor. While, Coinsquare has engaged Origin Merchant Partners as its financial advisor and Goodmans LLP as its legal advisor.
Coinsquare is currently seeking regulatory approval from the Investment Industry Regulatory Organization of Canada (IIROC).