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  5. WNDR: Hi Peter, I would appreciate your opinion of this new player in the crypto space. [WonderFi Technologies Inc.]
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Q: Hi Peter, I would appreciate your opinion of this new player in the crypto space.

Many thanks for your great service and best wishes for the holiday season,

David
Asked by David on January 02, 2024
5i Research Answer:

WNDR is a newly listed company which owns and operates crypto asset trading platforms comprising Bitbuy, Coinsquare, CoinSmart, and Coinberry. WNDR also provides SmartPay, a crypto payment processing platform. WNDR recently reached a collective user base of 1.6M registered Canadians and has combined assets under custody of $1B. Revenue has grown significantly in Q3 while margins also saw significant improvements. Balance sheet looks solid with minimal debt and a net cash position of $16.5M. WNDR is not profitable and has negative cash from operations at -28.7M in Q3. The business is an interesting opportunity to get exposure in the crypto space, having an established asset and user base. Valuation is expensive at 5.7x forward sales as WNDR pushes to achieve profitability. Being so newly listed, we would like to see how future financial results look before giving it consideration and would conisder it as higher risk, but it is a company to keep an eye on if crypto starts to pick up again.