Saturday , March 6, 2021

Mogo Buys A Piece of Cryptocurrency Trading Platform Coinsquare

Payments-technology provider Mogo Inc. is initially acquiring about 20% of Coinsquare, a Canadian cryptocurrency-trading platform, for US$44.4 million, with an option to purchase another 20% in the future.

Mogo’s first option to increase its investment in Coinsquare, which acts as the trading platform for MogoCrypto, which Mogo launched in 2018, will come just prior to the closing of the deal. At that time, Mogo will have an option to purchase another 10% of Coinsquare. Mogo will then have an option to purchase an additional 10% of Coinsquare 13 months after the deal closes. 

Mogo is investing in Coinsquare as a way to add value to MogoCrypto. “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,” Mogo chief executive David Feller said in a prepared statement. “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.”

A consumer checks his Mogo account.

For the month of January, cryptocurrency trading volume through Coinsquare totaled more than $413.7 million (U.S.).

Once the deal closes, Mogo will be able to appoint at least one, and possibly two, members to the Coinsquare board of directors. Reciprocally, Coinsquare will have a right to appoint one member to the Mogo board of directors. The deal, which is subject to regulatory approval, is expected to close during the first quarter.

Mogo could not be reached for additional comment

In addition to MogoCrypto, Mogo also offers the Mogo app, which enables consumers to access a digital spending account through the Mogo Visa platinum prepaid card. Consumers can use the app to buy and sell Bitcoin and receive free monthly credit-score monitoring, ID-fraud protection, and personal loans. More than 1 million consumers use the Mogo app.

Check Also

Shift4 Shrugs off a ‘Very Challenging Year’ With a $72-Million Move Into Stadiums

Shift4 Payments Inc. refers to the volume potential it’s trying to tap as a “coiled …

Do NOT follow this link or you will be banned from the site!