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Mogo announces $56.4mn investment for 19.99% stake in Coinsquare

By Pavithra R

February 12, 2021

  •  Mogo
  • Canada

Mogo, a FinTech company offering customers solutions to manage and control their finances through its mobile app, has announced its investment in Coinsquare, Canada’s leading premier cryptocurrency platforms for trading Bitcoin, Ethereum, XRP, and other cryptocurrencies.

The companies has entered into a definitive agreement to acquire 19.99% ownership of Coinsquare’s outstanding common shares on a post-transaction basis for total consideration of approx. $56.4mn. The Agreement is subject to regulatory approvals, including the approval of the TSX besides other customary closing condition.

The Agreement includes rights for Mogo to acquire an additional 20% ownership interest in Coinsquare through purchases of shares from current shareholders and the exercise of warrants under certain conditions for consideration based on a pre-money valuation of Coinsquare ranging from $250-350 mn.

The investment builds on a multi-year relationship between the two companies. Coinsquare acts as the trading platform for MogoCrypto, a service Mogo launched in 2018 to allow its members an easy and convenient way to buy and sell bitcoin.

“We believe strongly in the growing importance of cryptocurrency in the financial wallets of consumers, and deepening our relationship with Coinsquare will enable us to bring enhanced functionality and value into the MogoCrypto product. We’ve had a relationship with Coinsquare for nearly three years and built strong familiarity with their team and platform, which we view as the most robust trading platform in Canada for digital assets,” said David Feller, CEO of Mogo.

Founded in 2014, Canadian Coinsquare’s mission is to create a regulated and open financial platform for the world by leveraging blockchain technology. The firm provides digital asset traders with a proprietary trading platform engineered to deliver a secure, robust, and user-friendly interface for trading Bitcoin, Ethereum and other digital assets. The firm makes buying and selling digital assets seamless with customers able to easily manage their portfolio of digital assets. 

Coinsquare’s subsidiary, Coinsquare Capital Markets recently submitted a dealer membership application to the Investment Industry Regulatory Organization of Canada (IIROC) and an application to the Ontario Securities Commission (OSC) to operate a marketplace for digital assets.

“We’re excited to deepen our relationship with Canada’s leading fintech company. By leveraging Mogo’s digital wallet capabilities and base of more than one million members, combined with our deep crypto trading capabilities, we see significant opportunities to accelerate the growth of both businesses,” said Jason Theofilos, Board Member of Coinsquare.

Founded in 2003, Mogo is a digital challenger to the banks in Canada, empowering consumers with simple solutions to help them manage and control their finances.

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