Robinhood Makes Power Play: Snags WonderFi in Aggressive Canadian Crypto Expansion

Robinhood just bulldozed into Canada’s crypto scene—acquiring WonderFi in a move that screams ’bull market confidence.’ The zero-commission pioneer now owns a regulated gateway to Bitcoin, Ethereum, and that sweet, sweet retail trading volume.

Wall Street’s favorite disruptor sidesteps organic growth—again—by writing checks instead of building tech. Traders win; legacy finance shrugs and adjusts its tie.

One question lingers: When the SEC comes knocking, will Canada’s lighter-touch regulators play along? Place your bets.

Expansion into Canadian Crypto Services

Robinhood’s CEO, Johann Kerbrat, highlighted that WonderFi caters to both novice and seasoned crypto users in Canada. Kerbrat expressed the company’s ambition to provide innovative and user-centered cryptocurrency products in the Canadian market. This strategic purchase positions Robinhood to expand its reach and offerings beyond the US.

Since the announcement, Robinhood’s shares have experienced substantial growth, with stocks seeing a 42.7% increase over the last month. The stock’s rise to $62.77 illustrates its robust performance and positive market reception. This upward trend in Robinhood’s stock price reflects a strong investor reaction to the acquisition and the company’s international aspirations.

The Details of WonderFi Acquisition

Under this agreement, Robinhood will acquire all shares of WonderFi at CAD 0.36 per share. This price represents a premium over WonderFi’s recent Toronto Stock Exchange closing price. The acquisition is expected to finalize later in 2025, pending regulatory, court, and WonderFi shareholder approvals.

Before the acquisition, WonderFi’s market value stood at CAD 163.9 million. Despite a 13% drop in its share value on the Toronto Stock Exchange since the beginning of the year, Robinhood has exhibited positive market movement, underscoring its strategic benefits.

Dean Skurka, WonderFi’s President and CEO, acknowledged the shared vision of both companies to enhance cryptocurrency accessibility. Skurka expressed excitement about joining Robinhood and strengthening their products for customers, leveraging their combined expertise and resources.

Post-acquisition, WonderFi aims to maintain its product operations while integrating its leadership team into Robinhood’s Crypto division. The collaboration will merge WonderFi employees with Robinhood’s current 140-member workforce in Canada, providing enhanced expertise for Canadian digital asset users.

Robinhood’s Global Reach

The WonderFi acquisition follows Robinhood’s decision to offer US securities to users in the European Union. Moreover, Robinhood is exploring the tokenization of US-traded stocks via Solana$181 and Arbitrum platforms. These strategic moves demonstrate Robinhood’s ambition to broaden its user base within the cryptocurrency space.

In 2022, Robinhood reported a 58% revenue increase, reaching $2.95 billion. For the first quarter of this year, revenues amounted to $927 million, with a monthly active user base exceeding 14.4 million. The acquisition of Bitstamp and TradePMR further emphasizes Robinhood’s long-term confidence in the crypto markets, signaling its intent to strengthen its market position.