Coinsquare Expands With Acquisition of Canadian Competitor CoinSmart

As the current bear market persists, the landscape surrounding Canadian digital asset exchanges continues to become clearer – whether it be WonderFi acquiring Coinberry, or WealthSimple broadening its scope of services to include staking.  The most recent example of this now comes from CoinSmart as the company has just announced its acquisition by industry rival, Coinsquare.

Details of the Deal

The acquisition, which will see Coinsquare now become one of the largest exchanges of its kind in Canada, is set to be completed as follows.

• $3,000,000 cash payment to CoinSmart
• 5,222,222 shares in Coinsquare issued to CoinSmart
• Various performance-based payouts

In making this deal, CoinSmart will be expected to hold a roughly 12% share in Coinsquare.  Notably, in mid-2021, Mogo also acquired a roughly 20% share in Coinsquare.

Commentary

Upon announcing the deal, representatives from each CoinSmart and Coinsquare took the time to comment.

Justin Hartzman, CEO of CoinSmart, states, “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.”

Martin Piszel, CEO of Coinsquare, states, “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.”

Canadian Crypto

Currently, the digital asset sector is undergoing a widespread revamp in Canada as regulators like the CSA bring the sector in-line with its expectations/requirements.  Most notably, this is occurring in Ontario, with the OSC leading the way.

Over the past year, Ontarians have already been barred from accessing popular platforms like Binance, Bittrex, and more.  This does not mean that digital assets are going away however, as there are various exchanges that have already taken the necessary steps to continue operating in Canadas most populous province.

We recently highlighted this as Newton was granted approval to operate as a ‘restricted dealer' in much of the country.  While it has not yet gained full approval, Coinsquare has already entered the pre-registration phase with the OSC, allowing for the platform to continue operating in the meantime.