Robinhood seals $179m WonderFi deal to dominate Canadian crypto market

Robinhood has officially announced its acquisition of Canadian crypto leader WonderFi in a $179 million all-cash deal, moving closer to the actualisation of its quest for a global expansion strategy. The WonderFi deal is expected to position Robinhood to dominate Canada’s crypto market, leveraging WonderFi’s established platforms, Bitbuy and Coinsquare, which are among the country’s most trusted and regulated exchanges.

With over $2.1 billion in assets under custody, WonderFi’s infrastructure provides Robinhood immediate access to a mature market. Industry experts suggest this move could accelerate Robinhood’s push into DeFi and institutional crypto services, further solidifying its position as a key player in the evolving digital asset space.

Why the WonderFi deal matters for Robinhood

The WonderFi deal is a calculated play by Robinhood to tap into Canada’s rapidly growing crypto market. WonderFi’s subsidiaries, Bitbuy and Coinsquare, collectively manage over $2.1 billion in assets under custody, offering trading, staking, and custody services.

Johann Kerbrat, Robinhood Crypto’s SVP and GM, stated:

“WonderFi has built a formidable family of brands serving beginner and advanced crypto users alike, making them an ideal partner to accelerate Robinhood’s mission in Canada.”

The acquisition comes at a 41% premium over WonderFi’s last closing price, signaling Robinhood’s confidence in the WonderFi deal as a long-term growth driver.

The financial breakdown of the WonderFi deal

Robinhood will acquire all outstanding WonderFi shares at 0.36 CAD per share, a significant premium over recent trading prices. Before the announcement, WonderFi’s market cap stood at 163.9 million CAD, with its stock down 13.6% YTD on the Toronto Stock Exchange.

The WonderFi deal is expected to close in Q2 2025, pending regulatory approvals and shareholder consent. If successful, it will solidify Robinhood’s foothold in Canada’s crypto ecosystem.

A wave of crypto M&A in 2025

The WonderFi deal is part of a broader surge in crypto mergers and acquisitions, fueled by a more favorable regulatory environment under the Trump administration. Other major deals in 2025 include:

• Coinbase’s $2.9B acquisition of Deribit

• Ripple’s $1.25B purchase of Hidden Road

• Kraken’s acquisition of NinjaTrader

Robinhood itself has been aggressive in M&A, having acquired Bitstamp for $200M in 2024 to serve institutional clients. The WonderFi deal further cements its ambition to become a global crypto leader.

WonderFi’s strong performance in 2024

Prior to the WonderFi deal, the Canadian crypto firm demonstrated remarkable growth throughout 2024, establishing itself as a prime acquisition target. The company processed an impressive $3.57 billion in trading volume, representing a 28% year-over-year increase from 2023.

This surge in activity was driven by strong adoption of its regulated platforms, Bitbuy and Coinsquare, which saw user growth exceed 35% during the same period. WonderFi’s financials revealed revenue growth of 42% and expanding profit margins, making it one of Canada’s fastest-growing crypto businesses.

These outstanding metrics, combined with its regulatory-compliant operations, positioned WonderFi as an exceptionally attractive investment for Robinhood’s expansion strategy. The company’s ability to maintain growth during market fluctuations particularly stood out to analysts, with its Q4 2024 performance exceeding all forecasts.

What’s next for Robinhood and WonderFi?

With the WonderFi deal, Robinhood gains immediate access to a regulated, mature Canadian market. Analysts speculate that Robinhood may integrate WonderFi’s platforms into its own ecosystem, offering Canadian users a seamless trading experience.

Additionally, Robinhood is reportedly developing a blockchain network for European retail investors, suggesting that the WonderFi deal is just one piece of a larger global expansion strategy.

Industry experts point to at least three other Canadian crypto firms now in acquisition talks following Robinhood’s move. With regulatory clarity improving in key markets, investment banks report a 300% increase in crypto M&A inquiries compared to 2024. As Robinhood integrates WonderFi’s operations, all eyes will be on whether this becomes the first in a series of billion-dollar crypto deals reshaping the financial space.