Through the acquisition, Coinsquare has more than $350 million in assets in custody.
Coinsquare, currently Canada’s oldest operating cryptocurrency exchange and one of the largest in the country, is making further expansions with a new acquisition.
This is after the crypto exchange moved to acquire Canadian digital asset trading platform CoinSmart in a deal agreed on September 22, 2022.
According to the two companies, Coinsquare has entered into a definitive agreement with the registered securities dealer to acquire all of the issued and outstanding shares of Simply Digital Technologies, a wholly owned subsidiary of CoinSmart.
“This acquisition represents a monumental and exciting milestone for both companies and brings together two leading management teams,‘ said Martin Piszel, CEO of Coinsquare.
CoinSmart Founders Join Coinsquare
Under the terms of the acquisition, CoinSmart will receive $3 million in cash and 5,222,222 Coinsquare shares valued at approximately $5.02 per share for a total of approximately $26.2 million. In addition, CoinSmart could receive an additional amount of up to $20 million, linked to the company’s SmartPay business revenue over three years.
Once the cash and stock deal is completed, CoinSmart will hold an approximately 12% stake in Coinsquare, and its co-founders, including Justin Hartzman, Jeremy Koven and Michael Koralamongst, will join Coinsquare.
Hartzman, CEO of CoinSmart, will join Coinsquare’s executive team.
Coinsquare’s acquisition of the digital asset platform adds to its position as one of the largest crypto exchanges in Canada. The company was launched in 2014 and with this expansion it acquires the only qualified crypto depository provider in the country.
“With a diversified product suite, exceptional crypto talent and one of the largest user bases in Canada, the combined company will be well positioned to continue its aggressive expansion plansHartman said.
The deal will not only add to its growing customer base and crypto offerings, but also ensure that the combined company has $350 million in assets in custody.