Coinsquare Acquires Publicly Listed Crypto Exchange CoinSmart

CoinSmart reported gross revenue of $16.7 million in 2021 as retail transaction volumes soared soaring during Bitcoin bull market.

The crypto exchange landscape in Canada appears to be consolidating after Coinsquare, one of the country's largest digital asset exchanges, acquired CoinSmart for an undisclosed amount.

On Thursday, Coinsquare announced that it had entered into a definitive agreement to purchase all issued and outstanding shares of CoinSmart's wholly owned subsidiary, Simply Digital. Once the deal is finalized, CoinSmart will own an approximate 12% stake in Coinsquare on a pro forma basis.

Shares of crypto exchange CoinSmart, which trades on the NEO Exchange, rose 67% on Friday, largely in response to the news.

The acquisition makes Coinsquare one of the largest crypto exchanges in Canada and expands its operational and business capabilities. Founded in 2014, Coinsquare has expanded its service offerings to include retail and institutional trading, crypto payment processing, and digital asset custody.

CoinSmart was co-founded in 2018 by Justin Hartzman, who also served as the company's CEO. Following the acquisition, Hartzman is expected to join Coinsquare's management team.

As a publicly traded company, CoinSmart publishes its financial statements quarterly. In its annual summary released April 1, the company reported gross revenue of $16.7 million in 2021, a 357% year-over-year increase. Retail transaction volume increased by 875%, likely reflecting the Bitcoin (BTC) bull market of 2021.

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