- Canada’s leading crypto exchange bought the crypto trading platform CoinSmart.
- The agreement would allow Coinsquare to purchase a definite amount of shares of Simply Digital.
- Both companies aim at the nationwide accessibility of crypto assets.
Canada’s leading crypto exchange, Coinsquare, acquired the competing cryptocurrency trading platform CoinSmart Financial Inc. for about $29 million.
On Thursday, Coinsquare announced that it had adhered to a definitive agreement with CoinSmart, to purchase the issued and outstanding shares of the company’s subsidiary, Simply Digital. On a proforma basis, CoinSmart would hold a 12 percent ownership stake in Coinsquare.
It is told that the new venture would join Canada’s biggest crypto companies under the same roof, lending them more than one million customers and more than $ 350 million in digital assets. However, the deal between the companies would come to an end in the fourth quarter of this year.
Coinsquire’s acquisition of Simple Digital would enable it to expand its performance nationwide. The chief executive officers of both companies announced that the new move aimed at expanding the companies’ functioning, thereby making the digital assets and blockchain industry accessible to the whole country.
Martin Piszel, the CEO of Coinsquare commented:
This acquisition represents a monumental and exciting milestone for both companies and brings together two industry-leading management teams. The cryptocurrency market is going through immense change with regulators defining a roadmap for platforms to operate in Canada. This has led to an ever-increasing cost structure and additional complexity in operating a viable crypto exchange. We feel that scale and operational efficiency matter, and we are well positioned to play a leading role in defining the space in Canada.
Since the inception of Coinsquare in 2014, the company had been seeking to become a member of the Investment Industry Regulatory Organization of Canada (IIROC), but under certain regulations, the attainment was far ahead. However, the acquisition of CoinSmart facilitated it to become a marketplace member.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
