Despite the ongoing crypto winter, WonderFi remains active in its acquisition strategy, entering an agreement to acquire Toronto-based Blockchain Foundry (BCF) in an all-share deal.
WonderFi said it expects around 26.2 million of its common shares to be issued to shareholders of BCF as consideration, representing approximately 13.4 percent of the issued and outstanding shares of WonderFi. A spokesperson for WonderFi told BetaKit that BCF’s acquisition is worth around $12.6 million CAD. UPDATE 08/11/2022: As of November 7, the acquisition has closed.
Founded in 2016, BCF develops and commercializes blockchain-based business solutions, with a focus on infrastructure for digital assets and NFTs. The company also provides blockchain consulting services to corporate clients.
Led by CEO Dan Wasyluk, BCF trades on the Canadian Securities Exchange, OTC markets, and the Frankfurt Stock Exchange (FSE).
Earlier this year, BCF launched LastKnown, an NFT minting platform and marketplace for NFTs. Most recently, BCF partnered with private investment firm The Palmer Group to launch a Beta version of Metacademy, a ‘learn-to-earn’ educational platform focused on hands-on learning about Web3.
For the remainder of the year, BCF said it will be dedicating its time to further developing LastKnown and Metacademy, while also bringing two other products to market: NFKeys, a tokengating solution; and FoundrySwap, BCF’s solution to connecting tokens from Syscoin’s NEVM blockchain to its base UTXO blockchain without the need for third-party software.
BCF’s acquisition, according to the company, will add immediate scale to its product suite through WonderFi’s user base across its Bitbuy and Coinberry platforms.
Vancouver-based WonderFi, which trades on the Toronto Stock Exchange, OTC markets, and FSE, provides access to digital assets such as crypto, DeFi, gaming, and NFTs, in a compliant and regulated environment.
WonderFi recently submitted an application to list its common shares on the Nasdaq Capital Market, citing plans to accelerate its international expansion strategy, as well as attract global institutional and retail investors.
In March, WonderFi closed its acquisition of Bitbuy in a deal worth $206 million. It later completed its purchase of Coinberry in July, allocating $38.5 million in WonderFi stock for the transaction.
Ben Samaroo, CEO of WonderFi, said that the current economic conditions in the crypto market have made it “attractive” for WonderFi to be able to acquire companies like BCF, which have the potential to complement WonderFi’s core operating cryto asset trading platforms, Bitbuy and Coinberry, while also adding cash, liquid digital assets, and a “portfolio of private emerging crypto investments to WonderFi’s balance sheet.”
Since WonderFi’s purchase of Bitbuy, Samaroo said in June that WonderFi has reduced its staff across the two businesses by between 15 and 20 percent.
As reported in WonderFi’s third quarter financial results for 2022, Bitbuy’s full quarter report was included in WonderFi’s consolidated results for the first time. According to WonderFi, it’s continuing to optimize Bitbuy operations, including “strategic alignment of technology and resources.”
As of June, WonderFi reports it has $356 million in total assets, including $15 million in cash and $5.6 million in crypto assets and inventory. It also holds $187 million of Assets Under Custody for customers.
Featured image from WonderFi’s website.