CoinSquare, a Canadian digital asset exchange, announced on Friday the closing of the previously announced strategic investment in Coinsquare by Mogo Inc. (NASDAQ:MOGO) (TSX: MOGO), a digital payments and fintech company. Coinsquare reported that per the investment agreement, Mogo has acquired a 19.99% ownership interest for aggregate consideration consisting of a cash payment of $27.4 million and the issuance of 2,807,577 common shares of Mogo to Coinsquare and shareholders.
“The Investment also includes rights for Mogo to increase its ownership to up to 43% at a fixed price, through purchases of shares from current shareholders and the exercise of warrants under certain conditions.”
Speaking about the investment, Stacey Hoisak, CEO of Coinsquare, stated:
“Mogo’s investment in Coinsquare will drive platform developments that will enable us to better serve our current clients and widen access to digital asset investment opportunities for many more Canadians.”
David Feller, CEO of Mogo, further commented:
“By deepening our relationship with Coinsquare and leveraging their crypto capabilities alongside Mogo’s broader digital wallet capabilities including our recently announced transaction with Moka, we believe Mogo is extremely well positioned to provide Canadians with a leading next-gen wealth offering.”
Founded in 2014, Coinsquare claims to be one of the world’s premier cryptocurrency platforms for trading Bitcoin, Ethereum, XRP, and other cryptocurrencies.
“Coinsquare is FINTRAC regulated, has secured an exclusive relationship with one of Canada’s Big 5 banks. Coinsquare remains focused on transparency, risk mitigation, and building a regulated and safe environment for the trading of digital assets.”