Vancouver’s Mogo, a FinTech company, has sold about $13.8 million CAD of its WonderFi investment, nearly half its holdings, as WonderFi is expected to be acquired by Robinhood Markets. Mogo stated it sold the shares at a slight discount relative to Robinhood’s proposed $250-million valuation for WonderFi and plans to retain the rest until the deal concludes in the latter half of 2025.
“This transaction reflects our disciplined approach to capital allocation and allows us to accelerate our Bitcoin treasury strategy.” — Greg Feller, Mogo president
Mogo is using this sale to bolster its Bitcoin investment to approximately $2 million, following a $1-million investment in Bitcoin ETFs in June. The company holds a strategic Bitcoin treasury as both a capital benchmark and a reserve asset, viewing the new purchase as central to this strategy. In July, Mogo’s board approved up to $50 million for Bitcoin allocations.
This move follows a strong second quarter for Mogo, which saw a 48% rise in wealth management revenues and a 23% increase in payments revenue year-over-year, leading to a net profit of $13.5 million, largely due to a $12.7 million revaluation of its WonderFi stake.
Robinhood has agreed to acquire WonderFi’s shares for $0.36 per share, offering a 41-percent premium over the closing price, with WonderFi’s team joining Robinhood Crypto in Canada upon closure. Approval has been given by both WonderFi shareholders and the British Columbia Supreme Court.
Mogo, a key advocate for reform at WonderFi, along with Miami-based Kaos Capital, criticized WonderFi’s board for failure in capitalizing on its regulated exchange status in Canada. WonderFi countered, accusing Mogo of attempting to control its business without fair compensation to other shareholders.
Founded in 2003 by brothers Greg and David Feller, Mogo provides online trading, wealth management, and personal loans. It raised $50 million in its 2015 IPO and gained a Nasdaq listing in 2018. A tough crypto market and volatile tech stocks risked Mogo’s Nasdaq delisting in 2022 due to share price requirements, but the company has since recovered with a market cap of about $50 million now.
Bitcoin’s value has doubled year-over-year since Donald Trump’s 2024 election as U.S. President, with the administration striving to position the U.S. as a “crypto superpower” through digital asset stockpiling and favorable regulations. Although Canada hasn’t followed this trajectory, advocates have urged the government to adopt stablecoins. Meanwhile, Robinhood competitors Coinbase and Kraken have secured restricted dealer licenses in Canada, allowing limited operations.
Feature image courtesy Jakub Żerdzicki on Unsplash.