VC-backed Kraken to buy Canadian bitcoin exchange Cavirtex


Kraken has agreed to buy Cavirtex, a Calgary-based exchange for buying and selling bitcoin in Canadian dollars. No financial terms were disclosed. Kraken, a global bitcoin exchange, said the acquisition of Cavirtex and New York’s Coinsetter will set the stage for its “immediate and significant expansion into the North American market.” Founded in 2011, Cavirtex claims to be Canada’s first bitcoin exchange. It joined with Coinsetter last year. San Francisco-based Kraken has secured funding from several venture capital investors, including Hummingbird Ventures, which led its Series A round in 2014.

PRESS RELEASE

Kraken Acquiring Coinsetter and Cavirtex to Bring Global Bitcoin Exchange to United States and Canada

Largest bitcoin exchange in euro volume will consolidate industry and expand to North American markets

January 19, 2016

SAN FRANCISCO–(BUSINESS WIRE)–Global bitcoin exchange Kraken today announced that they are acquiring major exchanges Coinsetter and Cavirtex. NYC-based Coinsetter, founded in 2012, is one of America’s most prominent national bitcoin exchanges, and Cavirtex, founded in 2011, is Canada’s first bitcoin exchange with unmatched historical trading volume in the country. With these two acquisitions, Kraken sets the stage for an immediate and significant expansion into the North American market.

Already the world’s largest bitcoin exchange in euro volume and liquidity, Kraken will fully absorb both Coinsetter and Cavirtex brands in the acquisition. Client accounts of both exchanges will be automatically transferred to Kraken’s cutting edge, low fee platform on January 26, 2016. Once the transfer is completed, account holders will be directed to www.kraken.com to login, update account information if needed, and begin trading immediately.

In a related deal, Kraken today announced a partnership with American payment provider SynapsePay to allow rapid, low-fee domestic USD deposits and withdrawals to individual and institutional clients in 37 US states and Washington DC. For the first time, the vast majority of Americans will have access to Kraken’s full suite of advanced exchange services including seamless bitcoin-dollar (XBT/USD) trading.

Canadian clients will be able to deposit and withdraw funds to the exchange through Kraken’s continuing partnership with Vogogo, a leading payments platform in Canada.

Clients across the globe will receive the benefits of Kraken’s leading and ever-improving exchange. Outbound Coinsetter CEO Jaron Lukasiewicz said, “I’m excited what our acquisition by Kraken means for Coinsetter and Cavirtex customers, who will all benefit from Kraken’s leading platform, global team and unparalleled customer service. For years, the teams at Coinsetter and Cavirtex have worked closely with traders, bitcoin companies and investors to advance the burgeoning bitcoin space in North America. We are confident that Kraken is the right world-class company with the resources, vision and drive to successfully carry our torch far into the future.”

Kraken has previously concentrated on developing market share outside of the US, particularly in Europe where Kraken has become the dominant exchange for bitcoin-euro (XBT/EUR) trading. “The acquisition of Coinsetter and Cavirtex marks the beginning of a new era for Kraken,” said Kraken CEO Jesse Powell. “The consolidation of these three veteran giants is the largest exchange deal to date. Combined, we represent over thirteen years of bitcoin exchange experience in an industry that is only seven years old. Kraken has big, exciting plans for 2016. This year we will fully leverage what we’ve built as the world’s most trusted and secure bitcoin exchange. This is the year that we make long strides to capture key markets and crank up the volume. This is the year of the Kraken.”

To celebrate the acquisition, through March 1, 2016 all American and Canadian clients, including Canadians living abroad, will enjoy free deposits on Kraken’s trusted, next-generation bitcoin exchange. For more details, including regions supported, transfer options, and pricing, please see below or visit www.kraken.com.

Details for American clients:

States supported: AL, AR, AZ, CA, CO, DC, DE, GA, IA, ID, IL, IN, KS, MA, ME, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OK, OR, PA, SC, SD, TX, UT, VA, VT, WA, WI, WV, WY.

Fiat deposit options and pricing: Domestic wire (through SynapsePay), free until March 1, 2016. At expiration of the promotional period, deposits are $5 flat.

Fiat withdrawal options and pricing: Domestic wire withdrawals are $5 flat.

Exchange pricing: Maker-taker model with trade fees ranging from 0% to 0.26%.

Details for Canadian clients:

Provinces and territories supported: All (Canadians residing abroad also eligible).

Fiat deposit options and pricing: Interac and EFT (through Vogogo), free until March 1, 2016. 1% deposit fee after March 1, 2016 ($10 CAD min and $50 CAD max for both Interac and EFT).

Fiat withdrawal options and pricing: EFT only (through Vogogo), $10 CAD flat.

Exchange pricing: Maker-taker model with trade fees ranging from 0% to 0.26%.

About Kraken:

Based in San Francisco, Kraken is the world’s largest global bitcoin exchange in euro volume and liquidity. Kraken’s clients also trade US dollars, Canadian dollars, British pounds, Japanese yen and other digital currencies on a platform consistently rated the best and most secure bitcoin exchange by independent news media.

Founded in 2011, Kraken was the first bitcoin exchange to have its market data displayed on the Bloomberg Terminal, the first to pass a cryptographically verifiable proof-of-reserves audit, a partner in the first cryptocurrency bank, and one of the first exchanges to offer leveraged bitcoin margin trading. Kraken is trusted by hundreds of thousands of traders, institutions, and authorities across the world, from Toyko’s court-appointed trustee to Germany’s BaFin regulated Fidor Bank. In January 2016, Kraken announced that it was acquiring prominent bitcoin exchanges Coinsetter and Cavirtex to expand its global reach.

Kraken is backed by investors including Hummingbird Ventures, Blockchain Capital, and Barry Silbert’s Digital Currency Group, among others.

Contacts
Press contact:
Kraken
Christina Yee, 415-323-3402
Chief Brand Officer
[email protected]
https://www.kraken.com
or
Facebook: http://www.facebook.com/krakenfx
Twitter: http://www.twitter.com/krakenfx

Photo courtesy of Shutterstock

Find new deal opportunities, super-charge your fundraising efforts and track top managers with VCJ. Get your FREE trial! Or subscribe now!