Robinhood’s Big Move into Canada: A $179M Deal for WonderFi
Robinhood Markets has made its move into Canada with the acquisition of Canadian crypto company WonderFi Technologies for C$250 million (US$179 million) in a cash deal, representing a turning point for the company’s global expansion and strengthening its presence in the regulated crypto space. The transaction—offering a 41% premium over WonderFi’s last closing price—brings together Robinhood’s U.S. user base and WonderFi’s established platforms, Bitbuy and Coinsquare, which together handled over C$3.57 billion in trading volume in fiscal year 2024. Subject to shareholder and regulatory approvals, the deal is expected to close in the latter half of 2025, positioning Robinhood to compete more aggressively in the global digital-asset arena.
Deal Overview
The deal, which was announced on May 13, 2025, will involve Robinhood purchasing all the issued and outstanding WonderFi common shares at C$0.36 per share—for an aggregate of about C$250 million of total equity value and about US$179 million of cash consideration. The deal price is a 41% premium to the Toronto Stock Exchange closing price on May 12, 2025, and a 71% premium to the 30-day volume-weighted average trading price. WonderFi shareholders will consider the proposal in the next few months, and the transaction must be approved by Canadian regulators and the courts prior to being finalized in H2 2025.
Strategic Rationale
Enhancing Canadian Presence
WonderFi runs two of Canada’s largest regulated crypto exchanges—Bitbuy and Coinsquare—which had C$3.57 billion in trading volume in 2024, a 28% increase from the previous year. By merging these platforms, Robinhood gets instant access to an established pool of Canadian crypto users as well as a solid regulatory framework to complement its long-term vision to become a full-fledged financial-services provider outside of U.S. stock trading.
Aligning with Robinhood’s Growth Vision
The takeover aligns with Robinhood’s international expansion and diversification of products as a whole strategy. The company opened its Canadian headquarters in Toronto in 2024, leveraging regional tech capabilities and setting itself up for growth. Conversely, Robinhood’s Q1 2025 revenue from cryptocurrency transactions was US$252 million, a clear indication of the significance of the industry to its top line.
Regulatory and Approving Process
The transaction constitutes a statutory plan of arrangement pursuant to British Columbia’s Business Corporations Act. It continues to be subject to standard closing conditions, including:
- WonderFi shareholder approval
- Clearance of the Canadian regulatory body
- Arrangement approval by the court
Once cleared, WonderFi’s leadership team and over 140 Canadian employees will join Robinhood’s existing workforce, bolstering its capabilities in compliance, customer support, and engineering.
Industry Consolidation and Market Reaction
The acquisition falls within a broader wave of consolidation in the digital-asset industry under more favorable U.S. regulatory conditions. Notable recent transactions include Coinbase’s US$2.9 billion takeover of Deribit and Ripple’s US$1.25 billion purchase of Hidden Road. Robinhood’s stock has increased over 50% year to date as of 2025, a signal of investor confidence in its diversified growth strategy and expanding crypto universe.
Future Plans
Subject to completion, WonderFi will be brought under Robinhood’s Crypto business, furthering its rollout of better, customer-centric crypto products for Canadian consumers. The move supports Robinhood’s mission to democratize finance worldwide and suggests that it is set to leverage regulated exchanges to fuel the next phase of growth.