Robinhood grows its footprint in Canada by acquiring WonderFi
In Brief
Robinhood revealed Tuesday that it's acquiring Canadian crypto leader WonderFi for CA$250 million (around $178.56 million) in an all-cash deal as it pushes into Canada's growing digital asset market.
WonderFi operates two regulated crypto platforms, Bitbuy and Coinsquare, with over CA$2.1 billion in assets under custody. The transaction offers WonderFi shareholders CA$0.36 per share, representing a 41% premium over the company's recent closing price. (WonderFi went public in Canada through a reverse takeover in 2021.)
The tie-up follows Robinhood's $200 million purchase of European exchange Bitstamp last year and reinforces its global expansion strategy.
WonderFi's team, including CEO Dean Skurka, will join Robinhood Crypto, adding to the roughly 140 employees Robinhood already has in Toronto.
The deal is expected to close in the second half of this year.
TechCrunch talked with Robinhood CEO Vlad Tenev in December about his enthusiasm over a new U.S. administration that's far friendlier to the crypto industry, and about Robinhood's own growing focus on crypto. 'I think crypto is the next in line in a long chain of technology innovations that have changed the underlying infrastructure of the financial system in a positive way,' Tenev said at the time.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Affirm Expands Global Footprint: Will It Deliver Sustainable Growth?
Affirm Holdings, Inc. AFRM is making a bold move beyond the United States as it seeks to fuel its next growth phase. The Buy Now Pay Later (BNPL) space has started its international expansion. It recently entered the Canadian market through an extended partnership with Williams-Sonoma and KAYAK. The company officially announced its expansion into the U.K. market, indicating its major expansion beyond North America. AFRM exited the third quarter of fiscal 2025 with strong revenue growth, reporting $783 million in total revenues — a 36% increase from the prior year, following growth of 17.3% and 46.3% in 2023 and 2024, respectively. Its active consumers boosted 21% year over year to 21.9 million in third-quarter 2025, driven by strong consumer retention, growing adoption of the Affirm Card and the addition of new users through an increase in active merchants and partnerships. It anticipates total revenues to be between $3.163 and $3.193 billion in fiscal 2025. As a pioneer-fintech company in payment solutions, it primarily focuses on providing transparent, flexible and reliable financial services. It also focuses on expanding its reach in international markets through strategic partnerships. Affirm is already scaling through its early partnerships with local merchants, setting the stage to expand its services in both the retail and travel industries, which shows the growing adoption of BNPL in today's world, especially among Gen Z and Millennials. However, achieving sustainable growth will depend on careful implementation, the ability to adapt to regulations and successful integration into local markets. Some of AFRM's competitors in the payment solutions space are PayPal Holdings, Inc. PYPL and Sezzle Inc. SEZL. PayPal reported 436 million active accounts in the first quarter of 2025, which rose 2% year over year. Its net revenues increased 1% year over year to $7.8 billion in first-quarter 2025. PayPal's total payment volume increased 3% year over year in the first quarter of 2025. Sezzle reported 2.7 million active consumers in the first quarter of 2025, which grew 5.4% year over year. Sezzle's total revenues grew 123.3% year over year to $104.9 million in the same quarter. Its gross merchandise volume increased 64.1% year over year. Over the past year, AFRM's shares have surged 85.4% compared with the industry's rise of 37%. Image Source: Zacks Investment Research From a valuation standpoint, AFRM trades at a forward price-to-sales ratio of 4.62, below the industry average of 5.61. The company carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Affirm's 2025 earnings implies 100.6% growth from the year-ago period. It witnessed five upward estimate revisions in the past 30 days against one movement in the opposite direction. Image Source: Zacks Investment Research Affirm currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report Sezzle Inc. (SEZL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
33 minutes ago
- Yahoo
Lucid signs US graphite supply deal for EV batteries
This story was originally published on Supply Chain Dive. To receive daily news and insights, subscribe to our free daily Supply Chain Dive newsletter. Lucid Group has signed a second agreement with Graphite One for U.S.-sourced materials needed for lithium-ion batteries as the electric car maker seeks to strengthen its domestic supply chain, according to a June 4 press release. The latest agreement will provide Lucid and its battery cell suppliers with natural graphite from the Graphite Creek deposit north of Nome, Alaska, where Graphite One expects to begin production in 2028, per the release. The deal complements a 2024 pact in which Graphite One agreed to provide Lucid and its battery cell suppliers with graphite processed for use in battery anodes, starting in 2028, the release said. The active anode material (AAM) would come from Graphite One's planned plant in Warren, Ohio. Lucid has increased U.S.-based battery-electric-vehicle production as part of its strategy for weathering tariff uncertainty. Executives have highlighted the company's efforts to localize critical supplies, including the transition to Panasonic's Kansas battery facility and the sourcing of domestic graphite through partnerships with Graphite One and Syrah Resources. Beginning next year, Syrah will supply AAM from its production facility in Vidalia, Louisiana, under a three-year deal with Lucid, per the release. "A supply chain of critical materials within the United States drives our nation's economy, increases our independence against outside factors or market dynamics, and supports our efforts to reduce the carbon footprint of our vehicles," Lucid interim CEO Marc Winterhoff said in the release. Establishing supplier networks to build EV batteries has been a trend encompassing both traditional automakers and EV-only makers, such as Lucid. For example, Nissan Motor Corp and SK On signed a battery deal in March. The previous deal between Lucid and Graphite One is a non-binding supply agreement, pending Graphite One's commencement of AAM graphite production at the Ohio facility, according to the Canadian company's annual Management's Discussion and Analysis document, filed in April. The plant is Graphite One's first AAM factory, CEO Anthony Huston told Supply Chain Dive. If successful, the Lucid and Graphite One partnership would establish a U.S. source of graphite materials for EV batteries for the carmaker. However, Hunan Chenyu Fuji New Energy Technology, an AAM manufacturer based in Changsha, China, would play a critical role in supporting the partnership. Graphite One signed a technology licensing agreement and a consulting agreement with Chenyu last October, according to the MD&A document. Chenyu agreed to assist in the design, construction and operation of the Ohio facility. Additionally, Chenyu would receive quarterly royalties for its technology used in AAM manufacturing. Graphite One turned to Chenyu for the technology because it doesn't exist in the U.S., Huston said. 'There's no technology in the United States,' Huston said. 'And the reason why is because we haven't had it [graphite production] for 34 years. Once you stop producing something, you lose the ability to have the know-how, and the understanding, and the actual processing side that surrounds it.' Editor's note: This story has been updated to include comments from Graphite One CEO Anthony Huston Recommended Reading Automotive supply chains can benefit from sourcing alliances. Here's why. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
42 minutes ago
- Yahoo
Canada's youth hammered as unemployment rate reaches 9-year high
Indeed's senior economist Brendon Bernard says Canadian youth are disproportionately impacted by the general downward trend in both the economy and employment rate, because the youth population is growing while the job market is shrinking.
