Robinhood Shares Jump Nearly 10% Following Acquisition Deal For WonderFi: What's Going On?

Robinhood Markets Inc. HOOD shares are trading higher on Tuesday after the company announced it will acquire Canadian crypto trading platform WonderFi Technologies in an all-cash deal valued at approximately C$250 million ($178.9 million).

What To Know: The purchase price of C$0.36 (26 cents) per share represents a 41% premium to WonderFi's last closing price and a 71% premium to its 30-day volume-weighted average price, signaling a significant premium for existing shareholders.

The deal will be executed through a statutory plan of arrangement, with Robinhood acquiring all outstanding WonderFi common shares. WonderFi's largest shareholder, Mogo, which owns roughly 82 million shares, has already signed a voting support agreement in favor of the transaction. Other directors, officers and shareholders holding about 28% of WonderFi's outstanding shares have also agreed to support the deal, subject to conditions.

Mogo noted its role in shaping WonderFi through a previous strategic merger involving Coinsquare in 2023, which consolidated two major players in Canada's crypto space. The acquisition by Robinhood is expected to give the U.S. trading platform a stronger foothold in the Canadian digital asset market while expanding its global reach in cryptocurrency services.

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The transaction is expected to close in the second half of 2025, pending shareholder and regulatory approvals, along with other customary closing conditions. Robinhood's stock rallied on the news, reflecting investor optimism about the company's international expansion strategy and the value of the WonderFi acquisition.

HOOD Price Action: Robinhood shares closed Tuesday up 8.95% at $62.57, according to Benzinga Pro.

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