News Summary

Vancouver-based FinTech company Mogo has sold $13.8 million CAD of its WonderFi holdings, nearly 50% of its investment, ahead of the anticipated acquisition of WonderFi by Robinhood Markets. This move is part of Mogo’s strategy to expand its Bitcoin treasury, with the firm increasing its Bitcoin investment to approximately $2 million. Mogo’s board has approved up to $50 million in Bitcoin allocations. The transaction is aligned with a disciplined capital allocation approach, allowing Mogo to strengthen its strategic Bitcoin reserves, regarded as a capital and reserve asset. The sale comes after a strong financial performance by Mogo in the second quarter, reporting a net profit of $13.5 million, with significant contributions from the re-evaluation of its WonderFi stake. Robinhood’s agreement to purchase WonderFi includes a 41% premium on shares, and post-acquisition, WonderFi’s staff will join Robinhood Crypto’s Canadian team. Mogo was founded in 2003 and offers services including online trading and personal loans.