Mogo sells stake in WonderFi for $13.8 million to invest in Bitcoin before Robinhood deal
August 8, 2025
Mogo, a Vancouver-based financial technology company, has recently sold approximately $13.8 million CAD of its stake in Canadian crypto firm WonderFi. This move comes ahead of WonderFi’s anticipated acquisition by American financial services behemoth Robinhood Markets. Mogo disclosed that it sold its shares at a modest discount concerning WonderFi’s anticipated $250 million valuation under the impending Robinhood deal. The company has stated its intention to retain the remaining shares until the completion of Robinhood’s acquisition, which is slated for the latter half of 2025.
In a strategic shift, Mogo revealed that it has opted to increase its investment in Bitcoin, with the sale proceeds being utilized to raise its Bitcoin holdings to around $2 million. This decision follows Mogo’s prior $1-million investment in Bitcoin exchange-traded funds (ETFs) in June. The company emphasized that it has a strategic Bitcoin treasury framework that treats the cryptocurrency as both a capital benchmark and a reserve asset. Mogo’s board of directors has greenlit an allocation of up to $50 million in Bitcoin as part of this strategy.
Greg Feller, President and CFO of Mogo, emphasized the company’s disciplined approach to capital allocation and highlighted the acceleration of their Bitcoin treasury strategy through this transaction. The move to bolster its Bitcoin holdings comes on the heels of a successful second quarter for Mogo, wherein wealth management and payments revenues surged by 48 percent and 23 percent year-over-year, respectively. Mogo reported a net profit of $13.5 million, largely driven by the re-evaluation of its WonderFi stake, which contributed $12.7 million in the quarter.
Robinhood’s announcement in May of its plan to acquire WonderFi at $0.36 per share in cash represented a 41-percent premium to WonderFi’s market price at the time. Following approvals from WonderFi securityholders and the Supreme Court of British Columbia, the deal is set to go through seamlessly. Mogo has been vocal in its advocacy for change at WonderFi, citing the Toronto-based firm’s underperformance in the market and alleging mismanagement by WonderFi’s board.
Founded in 2003 by the Feller brothers, Mogo offers a range of financial services including online trading, wealth management, and personal loans. The company went public in 2015, raising $50 million through its initial public offering (IPO) and securing a Nasdaq listing in 2018. Despite facing challenges in the past, such as the risk of delisting from the Nasdaq in 2022 due to a minimum share price requirement, Mogo has rebounded and currently boasts a market capitalization of approximately $50 million.
The surge in Bitcoin’s value following the 2024 US presidential election has contributed to Mogo’s strategic shift towards increasing its Bitcoin holdings. Bitcoin’s value against the US dollar has doubled year-over-year, with the Trump administration aiming to position the US as a leading force in the cryptocurrency space. While Canada has yet to embrace a similar stance, calls from industry advocates for the adoption of stablecoins have been growing louder. Competitors to Robinhood, such as Coinbase and Kraken, have made strides in Canada by obtaining restricted dealer licenses to operate under particular conditions.