After he sold his company for over $1 billion, Ryan Reynolds’ investing spree continues with a fintech company that has ties to Binance and DraftKings | Canada News Media
Ryan Reynolds has invested in a diverse range of businesses over the last few years, from alcohol company Aviation Gin to budget mobile cell phone service Mint Mobile. Now, Reynolds is investing again, this time in Nuvei, a fintech payments company based in Montreal.
“I know about as much about fintech as I did about gin or mobile a few years ago. But Nuvei is impressive,” Reynolds said in a statement about his stake on Monday. “The leadership team is exceedingly intelligent and hard-working and it’s about time a Canadian company got the type of attention American tech companies do.”
And, as he’s done for other businesses, Reynolds starred in a short promotional video for the company, which he posted on Twitter.
Reynolds’ investment comes just weeks after he sold Mint Mobile to T-Mobile for $1.35 billion, a business he helped grow in part through his marketing efforts. The actor made an estimated $300 million from the deal with a 25% stake in the business. He previously sold Aviation Gin for $610 million in 2020, although his stake in that company is unknown. Reynolds’ other investments include Welsh soccer team Wrexham, and his marketing firm Maximum Effort.
Nuvei was founded 20 years ago and is active in about 200 markets. It partners with platforms like crypto exchange Binance and fantasy sports and betting platform DraftKings to offer payment services to users, and is worth nearly $6 billion, according to Bloomberg.
The company went public in Canada in 2020 and the U.S. in 2021—right when tech stocks were surging in popularity, and has taken a hit to its stock price since then. Nuvei was also the subject of scrutiny in a report by short-seller Spruce Point Capital Management at the end of 2021, which urged investors to sell their stake in the company over allegations of fraud by its top executives. Nuvei released a statement in 2021 that those claims were “misleading, false or unrelated to Nuvei’s business.”
“The allegations made against Nuvei are malicious and unfounded. I stand behind all our employees as we continue to execute on our strategy with a relentless focus on supporting our customers and making the world a local marketplace,” CEO Phil Fayer wrote.
Earlier this year, Nuvei acquired a smaller rival company, Paya, for $1.3 billion in a bid to expand its presence in the U.S. market.
Nuvei did not immediately return Fortune’s request for comment.
Reynolds and his business investments
Reynolds often appeared in short, funny ads promoting his companies. In the case of Mint Mobile his presence made a substantial impact—after Reynolds purchased a stake in Mint Mobile in November 2019, downloads of Mint Mobile’s apps rose 34% in the subsequent 12 months, compared to the preceding 12-month period.
“I have a lot of employees whose phone bills I pay, so I decided to try it out and wound up saving money,” Reynolds told Fortunein 2021 about how he came to buy Mint Mobile, adding that he also knew the company’s cofounder.
Reynolds bought fifth-tier football club Wrexham in 2020 along with actor Rob McElhenney for a total of $2.5 million. The duo also made a behind-the-scenes documentary about owning the club called “Welcome To Wrexham.”
In an interview last month following the announcement of Mint Mobile’s sale, Reynolds told CNBC that he, along with Maximum Effort, were always on the hunt for not-so-glamorous, yet essential products that they could invest in.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
