Canadian crypto firm CoinSmart is on the hunt for cheap assets
BNN Bloomberg
CoinSmart Financial is looking for deals in Canada, Europe and the US as turmoil in the cryptocurrency industry creates opportunities, according to Chief Executive Officer Justin Hartzman.
The crypto-asset trading platform is sifting through distressed assets, custodial-services firms and other exchanges and payment platforms, Hartzman said in an interview.
“M&A is an interesting thing, something that I spend a lot of time on,” he said. The high cost of regulation -- or lack of regulation -- gives the firm an “opportunity to jump in and find some properties or some targets that are really advantageous to our growth there.”
The Toronto-based company hasn’t been immune to the market collapse that’s pushed some lenders and hedge funds, such as Three Arrows Capital, into bankruptcy. CoinSmart’s shares have lost about three-quarters of their value this year, shrinking its market capitalization to just CUS$14 million (US$11 million). That’s a fraction of Coinbase Global Inc., which has also tumbled on increased scrutiny from US regulators.
