WonderFi Provides Update on Operational Progress

Rhea-AI Summary

WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) announced operational updates and unaudited financial information. The company reported $4.8M in consolidated revenue for January 2024, a 751% increase year-over-year. Cash and digital asset holdings were $37.4M as of December 31, 2023. The company achieved positive EBITDA and cash-flow positive operations on a consolidated basis. Crypto trading platforms facilitated over $350M in combined trading volumes during the month, representing a 524% increase year-over-year. Client assets under custody for Bitbuy and Coinsquare were approximately $1B as of January 31, 2024. SmartPay, the crypto payments processing platform, processed over $1B in total volumes since 2020. Bitbuy Private Wealth traded over $100M in volumes in January 2024, with an average trade size of $277K. The company also experienced increased user activity and account sign-ups, with an 82% year-over-year increase in active users in January.

Positive

• Consolidated revenue for January 2024 increased by 751% year-over-year
• Cash and digital asset holdings were $37.4M as of December 31, 2023
• Positive EBITDA and cash-flow positive operations achieved on a consolidated basis
• Crypto trading platforms facilitated over $350M in combined trading volumes during January 2024
• Client assets under custody for Bitbuy and Coinsquare were approximately $1B as of January 31, 2024
• SmartPay processed over $1B in total volumes since 2020
• Bitbuy Private Wealth traded over $100M in volumes in January 2024, with an average trade size of $277K
• 82% year-over-year increase in active users in January

Negative

• None.

Cash and Digital Asset Holdings of $37.4 Million as of December 31, 2023

Continued Momentum with Account Sign-Ups and Activity Post-Bitcoin ETF Launch

WonderFi Continues to Generate Positive EBITDA and Operating Earnings on a Consolidated Basis

Toronto, Ontario--(Newsfile Corp. - February 7, 2024) - WonderFi Technologies Inc. (TSX: WNDR) (OTCQB: WONDF) (WKN: A3C166) (the "Company" or "WonderFi") today announced certain operational updates and unaudited financial information. All financial references are in Canadian dollars unless otherwise noted.

This news release constitutes "a designated news release" for the purposes of the Company's prospectus supplement dated December 23, 2022, to its short form base shelf prospectus dated September 7, 2022.

Preliminary January Financial Metrics:

• January 2024 consolidated revenue of $4.8M (an increase of 751% year-over-year).

• WonderFi's Cash and Digital Asset Holdings were $37.4 Million as of December 31, 2023 (compared to $33.4M on September 30, 2023).

• WonderFi achieved positive EBITDA, and cash-flow positive operations on a consolidated basis during the month.

• WonderFi's crypto trading platforms facilitated over $350 Million in combined trading volumes during the month, compared to $56 Million in January 2023 (representing a 524% increase year-over-year).

• WonderFi continues to experience client inflows, with combined client assets under custody for Bitbuy and Coinsquare of approximately $1 Billion as of January 31, 2024.

Operational Updates:

• SmartPay, WonderFi's crypto payments processing platform, achieved a major milestone. SmartPay has passed $1 Billion in total volumes processed since 2020, with over half of those volumes occurring in the last 12 months.

• Bitbuy Private Wealth experienced a record January surpassing $100 Million in volumes traded (an increase of 323% year-over-year), with an average trade size of $277K.

• Bitbuy and Coinsquare crypto trading platforms continue to experience increased user activity and account sign-ups, with a year-over-year increase of 82% in active users in January.

"The Board is pleased with the Company's operational performance and continued progress towards surpassing its growth targets for 2024. We are impressed with the management team's ability to achieve positive EBITDA during the last quarter, ahead of schedule," shared Michael Wekerle, Board Co-Chair. "Under Mr. Skurka's leadership, we believe there is a continued opportunity to create meaningful shareholder value," added Mr. Wekerle.

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 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, WonderFi serves one of the largest crypto investor communities in Canada.

For more information, visit www.wonder.fi.

Additional Information

For additional information, please contact:

Media / Investor Relations
Charlie Aikenhead
Invest@wonder.fi

Forward-Looking Information and Statements

This press release contains certain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation and may also contain statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking information and forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the beliefs of WonderFi Technologies Inc. ("WonderFi" or the "Company") regarding future events, plans or objectives, many of which, by their nature, are inherently uncertain and outside of the Company's control. Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such "could", "intend", "expect", "believe", "will", "projected", "planned", "estimated", "soon", "potential", "anticipate" or variations of such words.

In addition, in connection with the forward-looking information and forward-looking statements contained in this press release, the Company has made certain assumptions. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information and statements are the following: the inability of the Company to meet its expected revenue targets and revenue growth of SmartPay, each of which may be subject to market conditions and regulatory or other approvals which may be required in connection therewith; the inability to maintain current levels of user growth, account sign-ups, trading volumes and SmartPay transaction volumes due to competition and cyclical market conditions; changes to key personnel; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; and material adverse changes in general economic, business and political conditions, including changes in the financial markets and compliance with extensive government regulation. These risks are not intended to represent a complete list of the factors that could affect the Company. A more fulsome description of risk factors that may impact business, financial condition and results of operation with respect to WonderFi is set out in its management's discussion and analysis and financial statements for the period ended March 31, 2023, as well as its annual information form and the joint management circular of WonderFi, Coinsquare and CoinSmart in respect of the Acquisition, available on its SEDAR+ profile at https://www.sedarplus.ca.

Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

The Toronto Stock Exchange has not approved or disapproved of the information contained in this release. Except as may be required by applicable law, WonderFi disclaims any obligation to update or revise any forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/197080

FAQ

What is the consolidated revenue for January 2024?

The consolidated revenue for January 2024 was $4.8M, representing a 751% increase year-over-year.

What were the cash and digital asset holdings as of December 31, 2023?

The cash and digital asset holdings were $37.4M as of December 31, 2023.

What were the trading volumes facilitated by the crypto trading platforms in January 2024?

The crypto trading platforms facilitated over $350M in combined trading volumes during January 2024.

What were the client assets under custody for Bitbuy and Coinsquare as of January 31, 2024?

The client assets under custody for Bitbuy and Coinsquare were approximately $1B as of January 31, 2024.

What milestone did SmartPay achieve?

SmartPay, the crypto payments processing platform, achieved a major milestone by processing over $1B in total volumes since 2020.

What were the trading volumes for Bitbuy Private Wealth in January 2024?

Bitbuy Private Wealth traded over $100M in volumes in January 2024, with an average trade size of $277K.

What was the year-over-year increase in active users in January?

There was an 82% year-over-year increase in active users in January.