Cryptocurrency exchange WonderFi, backed by cryptocurrency investor and billionaire Kevin O’Leary, has confirmed that it is in preliminary discussions with Canadian cryptocurrency exchange Coinsquare over a potential merger.

In a statement on January 12, WonderFi responded to a Bloomberg report that indicated that the two exchanges were in “advanced merger talks” in order to “create a Canadian crypto giant.”

WonderFi clarified that the discussions were “preliminary” at this point, adding that no agreement could be guaranteed.

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“In response to press speculation, the Company acknowledges that it has had preliminary discussions with various third parties regarding potential acquisitions and the Company being acquired, which is consistent with past practices and the Company’s overall acquisition strategy.”

“These discussions are preliminary in nature and are ongoing and no guarantees can be given that any agreement or agreements will be reached or that the terms of the deal will be agreed upon or the deal completed,” it said.

WonderFi is headquartered in Vancouver, Canada, while Coinsquare is headquartered in Toronto

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A Bloomberg report on Jan. 12 said that while Coinsquare does not disclose assets under management, it is estimated to have 500,000 users on its platform.

WonderFi company overview from November. Source: WonderFi Investor Platform Q3 2022
A potential merger of the two could see the combined entity serve 1.15 million users, making it the largest exchange in Canada.

WonderFi is one of the few publicly traded exchanges in Canada and has seen its share price increase by nearly 30% in the last 24 hours following merger speculation.

WonderFi share price Jan 5th to Jan 12th. Source: TradingView
News of the two exchanges’ potential merger comes just days after Coinsquare finalized an agreement to acquire all outstanding shares of a subsidiary of Canadian cryptocurrency exchange CoinSmart, a deal CoinSmart announced on September 22 that would have netted $3 million in cash and more. $26 million in Coinsquare stock as payment.

WonderFi also had a busy year with acquisitions in 2022, acquiring Canadian cryptocurrency exchange Bitbuy for $162 million and cryptocurrency exchange Coinberry for $38 million.

Related: The Cryptocurrency Is Headed To Survive Its Early Age

In an interview at the time, O’Leary stated that there would be “many more and bigger acquisitions” on the way.

It recently acquired North American blockchain development company Blockchain Foundry on September 1, which recently launched a non-perishable technology (NFT) platform and marketplace, as well as a Web3 learning platform.

Source: CoinTelegraph