Crypto Exchange Coinsquare to Set up Shop in Europe by Q4 of This Year

Francisco Memoria
  • Canadian crypto exchange Coinsquare is set to expand its operations to Europe by the fourth quarter of this year.
  • The move comes as it's eying a $120 million IPO. Raised funds would be used to fund its expansion.

Toronto-based cryptocurrency exchange Coinsquare is reportedly going to expand its operations to the European Union by the fourth quarter of this year, in a move that’s part of its plan to expand its operations throughout the world.

According to Finance Magnates, Coinsquare stated its customers in Europe will have access to all the cryptocurrencies it currently trades on its platform: bitcoin, bitcoin cash, ethereum, litecoin, dash, dogecoin, and XRP.

Europe is notably seen as a growing global cryptocurrency hub. Various crypto exchanges, including Binance, have revealed they plan on expanding their operations to Malta over its lax approach to the crypto space.

Citing a recent study, Finance Magnates noted that one in three German millennials have revealed they would consider adding cryptocurrencies to their investment portfolios. Per the cited study, 46% are “seriously considering” investing in a cryptocurrency this year.

Commenting on Coinsquare’s move Cole Diamond, the company’s CEO, stated:

Entering on a massive market like the EU is an exciting step closer to Coinsquare’s vision of becoming a global 21st century financial institution. Already the premier cryptocurrency exchange in Canada, we are careful in how we expand internationally to ensure we can offer the same high quality, secure service in every country we operate.

According to available data, Coinsquare’s daily trading volume is of about $8.5 million, and most of it is concentrated in its BTC/CAD trading pair. Accessing European markets will be notable for the company, as CryptoCompare data shows the Euro makes up over 3% of bitcoin’s total daily trading volume.

The Canadian exchange, per the news outlet, claims to trade over $5 billion worth of cryptocurrency a year, and to have over 100,000 customers. It raised $23.63 million in a funding round earlier this year, and is said to be eyeing a $120 million initial public offering (IPO) in September of this year.

Funds raised in its IPO will help it expand. As CryptoGlobe covered the exchange has partnered with DLTa 21 Blockchain Corp to launch a cryptocurrency trading platform in Japan. The move comes at a time in which the Asian country is looking to change how it regulates cryptocurrencies.

Other companies in the space looking to launch an IPO include mining hardware manufacturer Bitmain and Canaan. Notably, the Chinese giant’s IPO could be the biggest one in history.

Overstock CEO Sells Shares in His Company to Invest in Blockchain Projects

Patrick Byrne, the chief executive officer of Overstock.com (OSTK), has recently lashed out at investors who questioned his sale of 900,000 of his ‘founders shares’ in the company. Justifying his move, he revealed he needed the funds to invest in blockchain projects.

According to Business Insider, Byrne recently sent a letter to shareholders after the company’s stock prices plunged over 21% this week to their lowest since 2012, after he revealed he sold 500,000 of his shares earlier this week.

On Friday, the CEO revealed he sold an additional 400,000 shares, meaning he sold over 15% of his stake in the company. Although Overstock’s shares recovered on Friday, May 17, Byrne’s letter to shareholders was notable. In it, he wrote:

I simply had to supplement my nominal salary with stock sales in order to fulfill personal commitments to invest personally in blockchain projects such as Medici Land Governance, along with a need to meet charitable pledges.

The CEO added that he doesn’t plan on giving such an explanation again, justifying that he owes shareholders “staying within the law and not making decisions based on inside information, not explanations of my life and projects outside Overstock.”

He noted that the “unanticipated stir” caused by his sale was unexpected, and added “I had no idea that shareholders would demand explanations of why and how I might want to use my cash derived from my labor and my property to pursue my ends in life.”

Byrne is notably Overstock’s largest shareholder, and noted he told investors a year ago he would be making “significant sales” to fund different projects, including those related to blockchain technologies and, presumably, cryptocurrencies.

In fact, the libertarian sold 775,000 of his shares in September of last year, before this week’s sale. The stock’s price has fallen roughly 90% from its record high in January of 2018, when Overstock was benefitting from its cryptocurrency ventures and accompanying the cryptocurrency market’s performance.

In November of last year, Byrne revealed he had plans to sell Overstock’s retail business and go “all-in” on cryptocurrencies and blockchain technology. The CEO’s plan would see the company focus on its fully-owned subsidiary Medici Ventures, which has been invested in blockchain-related startups, after selling its retail business.

Overstock's price performance over the last two yearsSource: Yahoo Finance

Byrne has notably been battling short sellers targeting Overstock, as the firm competes with the likes of eBay and Amazon. Financial analytics firm S3 Partners has estimated short bets against it stand at $157 million, or 50% of its float. This makes it more targeted by short sellers than 99% of companies in the U.S.

Despite the company’s performance on exchanges, Overstock has since launched its tZERO security trading platform, and was one of the first companies to pay a “portion” of its taxes using bitcoin in Ohio.