Latest news with #WonderFi
CTV News
4 days ago
- Business
- CTV News
‘A second look to this merger': Public policy expert on proposed purchase of Canadian crypto firm
Vass Bednar, Managing Director of Canadian SHIELD Institute for Public Policy, joins BNN Bloomberg to discuss Robinhood's proposed acquisition of WonderFi.
Yahoo
4 days ago
- Business
- Yahoo
Robinhood just bought his firm. Now this crypto founder is going all-in on ‘decentralised AI'
Karia Samaroo likes to start companies. The Canadian entrepreneur has previously founded a crypto-focused investment bank, a project designed to detect deepfakes, and the crypto services firm WonderFi, which fintech giant Robinhood agreed to acquire for $182 million in May. For Samaroo's next venture, he's going all-in on a fledgling project called Bittensor, a blockchain network designed to offer an alternative to centrally controlled artificial intelligence powerhouses like OpenAI and Google. 'It was like when I first found Bitcoin and saw the problem that it was trying to solve,' Samaroo told DL News in an interview. 'It's the best shot on goal that we have for decentralised AI.' New firm Samaroo is backing Bittensor through xTAO, a new firm which he founded in December. On Monday, the Cayman Islands-domiciled company announced the raise of $22.8 million from venture investors including Animoca Brands, Digital Currency Group, and FalconX, among others. The firm will use a portion of the funds to buy TAO, Bittensor's native token, to keep in its corporate treasury. Bittensor launched its blockchain network and the TAO token in 2021. In late 2023, TAO surged 1,400% amid a wave of AI interest, and hit an all-time high of $757 the following March. The token has since retraced and trades at around $424, with a market value of just over $4 billion. Crypto treasury craze The news comes as crypto treasury companies explode in popularity. Yet with the increased attention, some are also starting to question them. Famed short seller Jim Chanos recently compared the hype surrounding Bitcoin treasury firms to the SPAC mania of 2021, which raised $90 billion in just three months before crashing. Others, such as Bloomberg News opinion columnist Matt Levine, have observed how holding crypto through a public company increases its value with investors. 'The basic situation is that US public equity markets will pay about $2 for $1 worth of Bitcoin. I don't know why this is, and I am not especially happy about it, but it's true,' Levine said. As for Bittensor, there are already three other publicly traded firms that hold over $1 million worth of TAO on their books. Samaroo said xTAO will set itself apart from them by also helping build, support, and scale the Bittensor ecosystem. 10% return The firm will stake its TAO for a 10% return and operate validators on the network, an activity which also generates revenue. There are also plans to provide clients access to products created on Bittensor through APIs and licensing agreements. 'We're a treasury company, but we're really trying to shift away from that, because I think there's a lot more that we can do,' Samaroo said. Why Bittensor? Samaroo said his support for Bittensor stems from his belief in AI. 'This is going to be the most powerful tool that humanity ever creates, and maybe the last one,' he said. But like many others, he's worried that a small group of powerful, well-funded companies currently have a monopoly on the most powerful AI models. Bittensor supporters say it is the answer to AI's centralisation problem. The network allows anyone to contribute their computing power to AI applications called subnets. In return, they are rewarded with valuable TAO tokens, similar to how the Bitcoin blockchain rewards those who process transactions with new Bitcoins. Supporters say Bittensor's decentralised model has a shot at competing with established AI firms because it isn't limited by the amount of money it can raise, as traditional firms are. Bittensor may be more decentralised. But it is also affected by the same issues that have landed AI companies in hot water, primarily concerning copyright infringement related to how their AI models are trained and the content they generate. In December 2023, The New York Times sued OpenAI for allegedly using the newspaper's articles to train its ChatGPT chatbot without permission or compensation. Last month, Disney and Universal also sued Midjourney, calling the firm's AI-powered image generator a 'bottomless pit of plagiarism' for its alleged reproductions of the studios' best-known characters. Samaroo said some of Bittensor's subnets have mechanisms in place to tackle issues with training data. However, because the network is decentralised, it may also be difficult to enforce best practices among everyone contributing to it. Market risk Betting on Bittensor is especially risky because it's at the intersection of arguably the two most hyped industries in recent years: crypto and AI. The crypto market is known for its extreme volatility. Dozens of analysts, including Apollo Global Management chief economist Torsten Sløk, have warned that the excitement surrounding AI technology is a bubble waiting to burst. Samaroo said xTAO is set up so it can withstand a 70% drawdown in the TAO token. The firm will keep cash on its balance sheet and forego using leverage to juice the amount of TAO it can acquire. 'I want to make sure that we have that runaway for the situation of an extended bear market,' he said. 'Having gone through a few crypto winters, I think the most important thing is that this just stays alive.' Tim Craig is DL News' Edinburgh-based DeFi Correspondent. Reach out with tips at tim@
National Post
21-07-2025
- Business
- National Post
Mogo's WonderFi Stake Set for Monetization Following Shareholder Approval of Robinhood Acquisition
Article content Paves the way for expanded Bitcoin treasury strategy and strategic investments in Mogo's digital finance platform Article content VANCOUVER, British Columbia — Mogo Inc. (NASDAQ: MOGO; TSX: MOGO), a digital wealth and payments company, today provided an update on the previously announced acquisition of WonderFi Technologies Inc. ('WonderFi') by Robinhood Markets, Inc. ('Robinhood'). Article content On July 17, 2025, WonderFi announced that its securityholders voted in favor of the proposed acquisition at a special meeting of securityholders. The full voting results and next steps can be found in WonderFi's press release. Article content Mogo is WonderFi's largest shareholder, holding approximately 82 million common shares of the company. Article content 'We're pleased to see WonderFi shareholders strongly support this transaction, which marks another step forward toward closing,' said Greg Feller, President of Mogo. 'As WonderFi's largest shareholder, we expect this deal to unlock significant liquidity that will further strengthen our balance sheet and enhance our strategic flexibility.' Article content Feller added, 'This event is a meaningful catalyst for Mogo. It gives us the opportunity to make strategic investments in our platform while continuing to increase our exposure to Bitcoin, consistent with our long-standing belief in Bitcoin as a superior long-term store of value. As always, we intend to allocate capital with discipline and maintain Bitcoin as our benchmark hurdle rate.' Mogo was among the first publicly traded companies in Canada to adopt Bitcoin as a treasury asset in 2020 and has consistently expressed its conviction in the long-term value of Bitcoin. Mogo recently approved an expanded Bitcoin treasury authorization of up to C$50 million and expects to update shareholders following the closing of the WonderFi transaction. The transaction is expected to close in the second half of 2025 and remains subject to customary regulatory approvals and other closing conditions. Article content About Mogo Article content Mogo Inc. is on a mission to build the future of intelligent finance, empowering consumers to grow wealth through a suite of innovative financial products and a capital strategy anchored by Bitcoin. The company's platform combines digital wealth management and lending with a growing commitment to hard asset capital allocation. Mogo is publicly listed on the NASDAQ and TSX. Article content Forward-Looking Statements Article content This news release may contain 'forward-looking statements' within the meaning of applicable securities legislation, including statements regarding the expected closing of the WonderFi-Robinhood transaction, Mogo's Bitcoin treasury strategy, Mogo's capital allocation strategy, and Mogo's strategic initiatives in respect of its digital finance platform. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as 'may', 'will', 'could', 'would', 'anticipate', 'believe', 'expect', 'intend', 'potential', 'estimate', 'budget', 'scheduled', 'plans', 'planned', 'forecasts', 'goals' and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, including receipt of applicable regulatory approvals in respect of its products, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the 'Risk Factors' section of Mogo's current annual information form, which is available at and Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise. Article content Article content Article content Article content Contacts Article content Article content Article content
Business Wire
21-07-2025
- Business
- Business Wire
Mogo's WonderFi Stake Set for Monetization Following Shareholder Approval of Robinhood Acquisition
VANCOUVER, British Columbia--(BUSINESS WIRE)--Mogo Inc. (NASDAQ: MOGO; TSX: MOGO), a digital wealth and payments company, today provided an update on the previously announced acquisition of WonderFi Technologies Inc. ('WonderFi') by Robinhood Markets, Inc. ('Robinhood'). On July 17, 2025, WonderFi announced that its securityholders voted in favor of the proposed acquisition at a special meeting of securityholders. The full voting results and next steps can be found in WonderFi's press release. Mogo is WonderFi's largest shareholder, holding approximately 82 million common shares of the company. 'We're pleased to see WonderFi shareholders strongly support this transaction, which marks another step forward toward closing,' said Greg Feller, President of Mogo. 'As WonderFi's largest shareholder, we expect this deal to unlock significant liquidity that will further strengthen our balance sheet and enhance our strategic flexibility.' Feller added, 'This event is a meaningful catalyst for Mogo. It gives us the opportunity to make strategic investments in our platform while continuing to increase our exposure to Bitcoin, consistent with our long-standing belief in Bitcoin as a superior long-term store of value. As always, we intend to allocate capital with discipline and maintain Bitcoin as our benchmark hurdle rate.' Mogo was among the first publicly traded companies in Canada to adopt Bitcoin as a treasury asset in 2020 and has consistently expressed its conviction in the long-term value of Bitcoin. Mogo recently approved an expanded Bitcoin treasury authorization of up to C$50 million and expects to update shareholders following the closing of the WonderFi transaction. The transaction is expected to close in the second half of 2025 and remains subject to customary regulatory approvals and other closing conditions. About Mogo Mogo Inc. is on a mission to build the future of intelligent finance, empowering consumers to grow wealth through a suite of innovative financial products and a capital strategy anchored by Bitcoin. The company's platform combines digital wealth management and lending with a growing commitment to hard asset capital allocation. Mogo is publicly listed on the NASDAQ and TSX. Forward-Looking Statements This news release may contain 'forward-looking statements' within the meaning of applicable securities legislation, including statements regarding the expected closing of the WonderFi-Robinhood transaction, Mogo's Bitcoin treasury strategy, Mogo's capital allocation strategy, and Mogo's strategic initiatives in respect of its digital finance platform. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo's growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, including receipt of applicable regulatory approvals in respect of its products, many of which are outside of Mogo's control. For a description of the risks associated with Mogo's business please refer to the 'Risk Factors' section of Mogo's current annual information form, which is available at and Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
Business Insider
19-07-2025
- Business
- Business Insider
'…Clearly Suboptimal': Wonderfi Stock (TSE:WNDR) Notches Up as Robinhood Subsidiary Buys In
It was, perhaps, one of the biggest deals that few even realized was going on. Financial technology (fintech) stock WonderFi (TSE:WNDR) shareholders recently approved a planned sale of the company to Wrangler Holdings, a subsidiary of Robinhood (HOOD). The move was reasonably welcome, even if it might have been a bit messier than some would have liked. Shares notched up fractionally in Friday morning's trading as a result. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. The deal calls for WonderFi shareholders to get $0.36 per share, and those brokers who hold warrants on the stock will get paid according to Black-Scholes values on the warrants outstanding, reports note. Most of the shareholders who voted were in favor of the move, as reports suggest that 96.28% of all shareholders voted in favor of the deal. When the broker warrant holders were factored in, that number rose to 96.3%. In an odd twist, though, most shareholders actually did not vote either way. Over 321 million votes were cast, reports noted, which represented 48.36% of all outstanding shares. Regulatory and court approvals will have to go through, of course, and the Supreme Court of British Columbia is set to start a hearing somewhere around July 21 into the matter. '…Clearly Suboptimal' In a report that might explain why voter turnout was so low on this issue, we find that the process of WonderFi selling itself to Robinhood was a bit contentious. Glass Lewis, a proxy advisory firm, called the process '…clearly suboptimal' in reports. It did recommend that shareholders go through with the deal, but it was clearly not pleased with how the deal was set up. The report also noted that getting the deal done required '…multiple seven-figure fees, compensation packages and other payments….' It even noted that one activist investor, who apparently threatened to reveal issues of '…unspecified allegations of poor governance…,' got a $6 million settlement out of the deal. In the strangest twist of all, the chair of the board will receive $1.8 million personally for '…acting like an investment banker.' Is WonderFi a Good Stock to Buy? Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:WNDR stock based on one Buy and one Hold assigned in the past three months, as indicated by the graphic below. After an 84.21% rally in its share price over the past year, the average TSE:WNDR price target of C$0.60 per share implies 71.43% upside potential.
