Crypto Exchange Giant FTX Enters Canada With Acquisition - BLOOMBERG
BY Bloomberg News,
(Bloomberg) -- Crypto exchange giant FTX is expanding its global footprint with a new acquisition in Canada, despite turmoil in the digital-asset market.
The Bahamas-headquartered crypto exchange said in a statement it has entered into an agreement to buy Bitvo, Inc., a Canadian crypto asset trading platform based in Alberta. Terms of the deal were not disclosed. The acquisition is expected to close in the third quarter of 2022.
“Our expansion into Canada is another step in proactively working with cryptocurrency regulators in different geographies across the globe,” Sam Bankman-Fried, CEO of FTX, said in the statement.
The crypto billionaire told Bloomberg previously that the firm has billions of dollars for acquisitions. The exchange raised $400 million at a $32 billion valuation in January. FTX’s US entity separately raised $400 million and bought Ledger X, a Commodity Futures Trading Commission-regulated exchange and clearinghouse, last year to gain a foothold in the derivatives market in the US.
A report from crypto-data firm Kaiko showed that trading volume on FTX surpassed Coinbase, its main competitor in the US, for the first time ever in May. Earlier this week, Coinbase announced that it will lay off 18% of its workforce amid a worsening crypto downturn.
Bitvo is registered as a restricted dealer under the securities laws of all provinces and territories in Canada, according to the news release.