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Coinsquare snaps up CoinSmart to launch massive Canadian crypto trading platform

Coinsquare is set to buy rivals CoinSmart in a deal valued at around CA$29 million to establish the company as one of Canada’s largest crypto asset trading platforms.

After the acquisition and integration, CoinSmart will own approximately 12 percent of Coinsquare on a pro forma basis. The combined company has transacted more than $10 billion since January 2018. It also has $350 million in assets under custody with a combined user base of over one million.

CoinSmart has described the acquisition as an “exciting day.” Justin HartzmanCoinSmart CEO, said: “We are extremely excited to be working with the Coinsquare team to build one of the largest regulated crypto asset trading platforms in Canada and I couldn’t be prouder of what we have achieved to date.

“With a diversified product suite, exceptional crypto talent and one of the largest user bases in Canada, the combined company will be well positioned to continue its aggressive expansion plans. While the crypto market is in the build-up phase of its lifecycle, this transaction will provide the torque needed to enter the next bull run in a favorable position.”

Meanwhile Coinsquare CEO Martin Pisze adds, “This acquisition represents a monumental and exciting milestone for both companies and brings together two industry-leading management teams. We look forward to working together to shape the growth and development of the crypto industry in Canada, and together we will be able to offer our customers the most innovative and secure products, backed by the highest regulatory standards in the industry.”

The combined platform

The combined company will have processed more than $10 billion in crypto transactions and $350 million in assets under custody since January 2018. It will provide a diversified and regulated platform for trading, payments, wealth management and custody of digital assets. There will be trading for Bitcoin, Ethereum, Litecoin and other digital assets.

The purchase price is subject to customary post-closing adjustments upon completion of the transaction expected in the fourth quarter of 2022. CoinSmart has engaged Eight Capital as a financial advisor and Wildeboer Dellce LLP as his legal advisor. Meanwhile, Coinsquare has hired Origin Merchant Partners as its financial advisor and Goodman’s LLP as his legal advisor.

Coinsquare is currently seeking regulatory approval from the Investment Industry Regulatory Organization of Canada (IIROC).

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