Mogo Portfolio Company WonderFi Provides Corporate Update
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) announced that its portfolio company, WonderFi Technologies Inc. (TSX: WNDR), is one of the largest crypto exchange platforms in Canada, with over 1.6 million users and $1 billion in client AUC. Mogo holds ~87 million shares in WonderFi, which represents a ~13% ownership interest. WonderFi owns and operates leading digital asset businesses in Canada, including Bitbuy, Coinsquare, and SmartPay. Q4 2023 corporate highlights include combined client assets under custody exceeding $1 billion, $760 million in combined trading volumes, and over $180 million in crypto payment volumes. WonderFi achieved cash-flow positive operations on a consolidated basis during the quarter.
The announcement by Mogo Inc. regarding WonderFi Technologies Inc.'s corporate update and Q4 2023 guidance has significant implications for investors and stakeholders. A key highlight is WonderFi's achievement of cash-flow positive operations on a consolidated basis, which is a critical milestone for any company, particularly in the volatile cryptocurrency market. This indicates operational efficiency and could signal a sustainable business model, which is vital for long-term investor confidence.
WonderFi's position as the owner of Canada's only fully regulated crypto exchange is noteworthy. Regulatory compliance is a major concern in the crypto industry and operating a fully regulated exchange provides a competitive advantage, potentially attracting risk-averse investors and users concerned with security and legal compliance. Additionally, the reported $1 billion in client assets under custody and significant trading and payment processing volumes demonstrate robust platform activity and user engagement.
For Mogo Inc., holding approximately 13% ownership in WonderFi represents a strategic investment in the digital asset space. The potential for long-term growth in the industry and the diversification benefits for Mogo's portfolio should be carefully weighed against the inherent risks associated with the cryptocurrency market, such as regulatory changes and market volatility.
WonderFi's market presence as one of the largest crypto exchange platforms in Canada, with 1.6 million users, highlights the growing adoption of digital assets in the region. The combined trading volumes of $760 million and crypto payment volumes of over $180 million processed by SmartPay during the quarter reflect a significant level of economic activity facilitated by WonderFi's platforms.
It is essential to consider the broader market context in which these figures are reported. The cryptocurrency market has faced numerous challenges, including market fluctuations and regulatory scrutiny. WonderFi's reported growth and cash-flow positivity in this context suggest resilience and adaptability. However, it is crucial to monitor how these platforms will continue to perform amid evolving market conditions and increased competition.
WonderFi's consolidation of major crypto trading platforms like Bitbuy and Coinsquare may also indicate a trend towards industry consolidation, which could have broader implications for market dynamics, including pricing power and user experience.
The reported financial health of WonderFi and its operational milestones are reflective of the broader fintech and cryptocurrency sectors' growth trajectory. The ability to achieve cash-flow positivity in a nascent and often unpredictable market is a strong indicator of WonderFi's potential to capitalize on the industry's growth trends. This growth is underpinned by increasing consumer and institutional interest in digital assets as alternative investment vehicles and payment methods.
However, the cryptocurrency market is known for its cyclical nature and sensitivity to external factors such as regulatory developments and macroeconomic trends. Stakeholders must remain prudent and consider the potential for market corrections that could affect the value of digital assets and the profitability of platforms like WonderFi.
Furthermore, the integration of Bitbuy and Coinsquare under WonderFi's umbrella may lead to economies of scale and operational synergies, potentially reducing costs and enhancing profitability in the long term. This strategic positioning could be advantageous if the market for digital assets continues to mature and consolidate.
01/08/2024 - 10:04 AM
With over 1.6 million users and $1 billion Canada
Mogo holds ~87 million shares in TSX listed WonderFi
TORONTO --(BUSINESS WIRE)--
Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), one of Canada’s leading financial technology companies, today announced that its portfolio company, WonderFi Technologies Inc. (“WonderFi”) (TSX: WNDR), provided a corporate update and Q4 2023 guidance . With 1.6 million users and $1 billion Canada . Mogo is WonderFi’s largest shareholder holding ~87 million common shares (~13% ownership interest).
WonderFi owns and operates leading digital asset businesses in Canada . WonderFi is the holding company for two of the largest crypto trading platforms in Canada , Bitbuy and Coinsquare (the only fully regulated crypto exchange in Canada ), and SmartPay, a crypto payments processing platform.
Among the Q4 2023 corporate highlights reported by WonderFi:
As of December 31, 2023, combined client assets under custody for Bitbuy and Coinsquare exceed $1 billion
Bitbuy and Coinsquare facilitated $760 million
SmartPay processed over $180 million
WonderFi achieved cash-flow positive operations on a consolidated basis during the quarter.
“We commend the WonderFi team on solid execution following the merger in July 2023,” said Greg Feller, President & CFO of Mogo Inc. “As the owner of Canada’s only fully regulated crypto exchange, along with its strong balance sheet and meaningful scale, we believe WonderFi is well positioned to benefit from long-term growth trends in the industry and to build value for shareholders over time. With an improving environment for digital assets, we believe Mogo’s 13% ownership in Wonderfi provides our shareholders with a unique and meaningful participation in this emerging global asset class.”
About Mogo
Mogo Inc. (NASDAQ:MOGO; TSX:MOGO) is a financial technology company headquartered in Vancouver, Canada . With more than 2 million members, $9.9B 13% equity stake in Canada’s leading Crypto Exchange WonderFi (TSX:WNDR), Mogo offers simple digital solutions to help its members dramatically improve their path to wealth-creation and financial freedom. Mogotrade offers commission-free stock trading that helps users thoughtfully invest based on a Warren Buffett approach to long-term investing – and make a positive impact with every investment. Moka offers Canadians a real alternative to mutual funds that overcharge and underperform with a passive investing solution based on a S&P 500 strategy at a fraction of the cost. Through its wholly owned digital payments subsidiary, Carta Worldwide , Mogo also offers a low-cost payments platform that powers next-generation card programs for companies across Europe and Canada . The Company, which was founded in 2003, has approximately 200 employees across its offices in Vancouver , Toronto , London & Casablanca .
About WonderFi
WonderFi owns and operates leading digital asset businesses in Canada . WonderFi is the holding company for Bitbuy and Coinsquare, two of Canada's largest regulated crypto trading platforms and SmartPay, a crypto payments processing platform.
With a collective user base of over 1.6 Million registered Canadians and a combined assets under custody exceeding $1 Billion Canada .
For more information, visit www.wonder.fi .
Forward-Looking Statements
This news release may contain “forward-looking statements” within the meaning of applicable securities legislation, including statements regarding future growth of WonderFi. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at the time of preparation, are inherently subject to significant business, economic and competitive uncertainties and contingencies, and may prove to be incorrect. Forward-looking statements are typically identified by words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Mogo’s growth, its ability to expand into new products and markets and its expectations for its future financial performance are subject to a number of conditions, many of which are outside of Mogo’s control. For a description of the risks associated with Mogo’s business please refer to the “Risk Factors” section of Mogo’s current annual information form, which is available at www.sedarplus.com and www.sec.gov . Except as required by law, Mogo disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240108480155/en/
For further information:
Craig Armitage
investors@mogo.ca
US Investor Relations Contact
New York | Phoenix
shamsian@lythampartners.com
Source: Mogo Inc.
How many users does WonderFi have?
WonderFi has over 1.6 million users.
What is the client AUC of WonderFi?
WonderFi has $1 billion in client AUC.
How many shares does Mogo hold in WonderFi?
Mogo holds ~87 million shares in WonderFi, representing a ~13% ownership interest.
What are the digital asset businesses owned by WonderFi?
WonderFi owns Bitbuy, Coinsquare, and SmartPay.
What were the Q4 2023 corporate highlights reported by WonderFi?
The Q4 2023 corporate highlights include combined client assets under custody exceeding $1 billion, $760 million in combined trading volumes, and over $180 million in crypto payment volumes. WonderFi achieved cash-flow positive operations on a consolidated basis during the quarter.
