Robinhood Markets Inc (NASDAQ: HOOD) is expanding in Canadian markets through the $178.98 million acquisition of cryptocurrency exchange, WonderFi Technologies Inc. (TSE: WNDR) (OTCMKTS: WONDF) (WKN: A3C166).
The all cash acquisition puts Wonderfi at 36 Canadian cents per share, which is a 41 per cent premium over its closing price before the Tuesday announcement.
Robinhood, widely known for democratizing investing in the U.S., has scaled innovative and accessible financial products to millions. The company is building a global financial ecosystem with crypto products already available in eligible EU countries. Furthermore, Robinhood brings a strong track record of executing global transactions and acts as a credible counterparty. It also plans to fund the purchase using cash on hand.
“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,” said Johann Kerbrat, head of Robinhood Crypto, in the official announcement.
Robinhood is a popular commission-free brokerage platform. It has also long aimed to expand internationally and struck a deal last year to acquire cryptocurrency exchange Bitstamp. Its latest acquisition targets Canadian customers. Toronto-listed WonderFi owns and operates Bitbuy and Coinsquare, two leading crypto platforms in Canada.
Furthermore, WonderFi reported a 28 per cent increase in trading volume, reaching CAD$3.57 billion in fiscal 2024.
The company will continue operating its products after the arrangement closes. Its leadership team will join Robinhood Crypto, bringing experience in delivering digital asset products to Canadian customers. Meanwhile, WonderFi’s present employees will become part of Robinhood’s Canadian team, which already includes more than 140 employees.
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Robinhood famous for Wall Street Bets
Most people remember Robinhood because of its role in the market kerfluffle in 2021 regarding Wall Street Bets (WSB).
WSB is a popular subreddit founded in 2012 where retail investors share high-risk stock and options trades, often with meme-driven humour.
In early 2021, it gained global attention when members coordinated to buy heavily shorted stocks like GameStop (NYSE: GME) and AMC Theatres, triggering a “short squeeze.” Hedge funds betting against these stocks faced massive losses, while some individual investors saw huge gains. The WSB movement was driven by a mix of anti-establishment sentiment, frustration with institutional investors, and a belief in the power of collective retail trading.
Robinhood played a central role in the WSB saga. As the go-to trading app for many WSB users, Robinhood made it easy for retail investors to buy and sell stocks with no commissions. Its user-friendly interface, fractional share features, and widespread mobile access fuelled a surge in participation during the height of the GameStop rally.
However, Robinhood faced backlash in late January 2021 when it restricted trading on several of the most volatile WSB-targeted stocks. The move sparked outrage among users, celebrities, and lawmakers, who accused the platform of siding with institutional interests. Robinhood cited clearinghouse deposit requirements as the reason for the restrictions. The controversy also led to congressional hearings and scrutiny of market infrastructure and payment-for-order-flow practices.
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