Coinsquare reportedly made an announcement in regards to forming a new deal. The company has announced that it will soon be acquiring CoinSmart.
Coinsquare to Acquire CoinSmart
On Thursday, Coinsquare made an official announcement through their website that they were soon going to acquire CoinSmart.
The firm revealed that it has already signed a deal, which would see it gets to acquire CoinSmart, which is considered to be its peer.
The company has announced that following the acquisition, it will be able to offer stock and cash services to its users as a combination.
The Cryptocurrency firms are Consolidating
Given the current downtrend of the cryptocurrency market resulting in a crypto winter, it is the best move made by any firm to consolidate themselves.
During the harsh times, the cryptocurrency exchanges and the trading platforms have been joining hands to help each other to survive the winter.
By joining forces, they are not only attempting to survive through the winter but also competing with globally recognized competitors in the same fields.
It is to be kept in mind that the deal between Coinsquare and CoinSmart is not one of its kind or unique. In the past, many companies have joined their hands to survive through the harsh times that the crypto-verse is facing.
At the beginning of 2022, Kevin O’Leary, a Canadian announced the merger between Coinberry and Bitbuy. The merger between the two firms was announced by WonderFi, which is backed by Kevin O’Leary.
Details of Coinsquare/CoinSmart Merger
The reports confirm that following the deal, the valuation of the company would rise to 30 million Canadian dollars. However, the over-the-counter and SmartPay businesses run by CoinSmart would eventually add another 20 million dollars to the entire deal.
The deal has specific terms added, which suggest that 3 million Canadian dollars will be given to CoinSmart in cash. Additionally, CoinSmart would also be getting its hands on the newly issued shares by Coinsquare.
To be precise, CoinSmart would acquire 5.2 million shares belonging to Coinsquare, which would translate to 26 million Canadian dollars.
The reason behind the Deal
Justin Hartzman, the CEO at CoinSmart talked about the significance of forming a deal with Coinsquare.
As per Hartzman, they have exceptional cryptocurrency talent and their product suite is quite amazing. They have built up a great user base that is among the largest in Canada for any crypto firm.
With their entities combined, they will be able to position themselves quite well in the Canadian market. However, they will have a vast reach in the cryptocurrency and other trading markets.
With the merger, both companies will have a combined user base of over 1 million, which would gain access to cryptocurrencies.