The Canadian crypto exchange scene seems to be undegoing consolidation, following Coinsquare’s acquisition of CoinSmart for an anonymous sum.
Specifically, Coinsquare – one of the top-tier crypto entities in the nation – reportedly revealed details of a definitive agreement to acquire all issued and outstanding shares of CoinSmart’s wholly-owned subsidiary Simply Digital.
As soon as the agreement is finalized, CoinSmart will reportedly have possession of approximately 12% ownership stake in Coinsquare on a pro-forma basis.
Shares of the CoinSmart crypto exchange – currently open for trading on the NEO Exchange – experienced a 67% surge, mainly in response to the news.
The purchase will help Coinsquare secure a spot in the list of Canada’s most major crypto exchanges, as well as widening its operational and business scopes.
Established in 2014, Coinsquare has undergone expansion of its offerings to cover retail and institutional trading, crypto payment processing and digital asset custody.
CoinSmart was co-founded in 2018 by Justin Hartzman, who also took up the role as the firm’s CEO. Following the acquisition, Hartzman is set to become a part of Coinsquare’s executive team.
Functioning as a publicly traded firm, CoinSmart discloses its financial statements on a quarterly basis. In its annual summary released on April 1st, the firm reported $16.7 million in gross revenue in 2021, an increase of 357% year-over-year. Retail trading volume grew by 875%, likely reflecting the Bitcoin (BTC) bull market of 2021.
Coinsquare is one of just two crypto exchange entities fuctioning in Canada to conduct pre-registration with their principal regulators as they work toward full compliance with securities laws. The pre-registration requirements were established by the Canadian Securities Administrators, or CSA, and allow crypto exchanges to remain operational while their full applications with CSA are being reviewed.