Internationally-known crypto trading platform FTX has entered a deal to acquire Calgary-based Bitvo to expand into Canada.
The deal is expected to close in the third quarter of this year, subject to regulatory approval and closing conditions. FTX did not disclose the financial terms of the acquisition.
Bitvo is one of the few Canadian crypto companies that are registered restricted dealers through the Canadian Securities Administrators (CSA). It received its exemption in April, joining Bitbuy, Coinberry, Wealthsimple, and CoinSmart.
Founded in 2018, Bitvo is a wholly-owned subsidiary of Toronto-headquartered Pateno Payments. Bitvo’s platform enables users to buy, sell, hold, deposit, and withdraw crypto assets such as bitcoin, Ether, and others. Bitvo is also registered with FINTRAC as a money services business in the virtual asset service provider category.
Pateno provides payment processing services to Bitvo, other crypto trading platforms based in Canada, and online businesses in various industries.
Upon completion of the acquisition, FTX said Bitvo will be integrated into the former’s global team serving the Canadian market “in a variety of capacities.”
Pamela Draper, CEO of Bitvo, previously worked at BMO Capital Markets. In her seven-year tenure, she last served as the bank’s director of equity capital markets. She is currently also the director of the Canadian Blockchain Association for Women.
FTX has completed five acquisitions to date. Earlier this year, it purchased Japan-based crypto exchange Liquid Group to serve its Japanese users. FTX also acquired Quoine, one of 30 exchanges registered with Japan’s Financial Service Agency.
In January, FTX announced that it closed a $400 million Series C round, bringing the company’s valuation to $32 billion. The financing is the third fundraise to occur in the past six months for FTX, bringing the total capital raised to $1.8 billion with FTX’s valuation increasing by over 75 percent in that period, according to the company.
FTX’s move to acquire Bitvo is notable amid the current turbulent environment in the crypto market. Multiple companies in the space have imposed layoffs, including Vancouver-based WonderFi, as well as international companies Crypto.com, Coinbase, and BlockFi.
Despite volatile market conditions, WonderFi recently decided to list on the Toronto Stock Exchange (TSX), saying that the company is “well-prepared” for these conditions, citing the strength of its balance sheet due to some “timely capital raises.”
Featured image from Bitvo’s website.