Mogo Acquires 20% Stake In Coinsquare For $56.4M

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Mogo Inc. (NASDAQ: MOGO) inked an agreement to acquire a 19.99% stake in Canada’s digital asset trading platform Coinsquare Ltd for $56.4 million.
The agreement includes an additional acquisition right of a 20% stake in Coinsquare through purchases of shares from current shareholders for a consideration based on pre-money valuation ranging between $250 million and $350 million.
The investment builds on a multi-year relationship between the two companies as Coinsquare is the trading platform for Mogo’s bitcoin trading service MogoCrypto.
Mogo will appoint one nominee to Coinsquare’s board, which may increase to two nominees. Coinsquare will be allowed to appoint one nominee to the Mogo’s board.
The agreement is expected to close by the first quarter of 2021.
Mogo recently posted a robust bitcoin transaction volume in January. The company had declared preliminary corporate investment plans of up to $1.5 million in bitcoin with further investment plans in 2021 upon the monetization of its $17 million investment portfolio.
Price action: MOGO shares are up 5.2% at $9.54 on the last check Thursday.