California-based online payment company Bolt is pulling out of a deal to buy crypto provider Wyre. News of the canceled deal, which was agreed earlier this year, comes amid plummeting valuations in the crypto and fintech sectors.
Bolt drops plan to acquire Wyre for $1.5 billion
Bolt Financial, an American technology company headquartered in San Francisco, said on Friday it had canceled a deal to buy crypto infrastructure provider Wyre Payments, Reuters reported on Saturday. A definitive agreement to acquire Wyre for $1.5 billion has been announcement via the e-commerce platform in early April.
The deal was considered one of the biggest crypto firm acquisitions this year. After a funding round in January, Bolt was last valued at $11 billion. The report notes, however, that high-tech valuations have since come under increased pressure as investor sentiment has been hit by recession fears and negative stock market developments.
Payments processor Stripe and fintech Klarna Bank also made significant valuation cuts, Reuters pointed out. Industry valuations have also dropped significantly in the crypto sector as the market tumbled over the past few months.
In a released statement, Bolt emphasized that he will continue his partnership with Wyre. The online payment company explained that remaining independent would allow it to focus on its core business areas. Company CEO Maju Kuruvilla reportedly said:
We will continue our existing business partnership with Wyre to lead the way in crypto integration into our ecosystem, bringing Wyre’s innovative crypto infrastructure to the world.
Wyre offers blockchain-connected payment APIs and fiat-crypto gateways, cryptocurrency currencies and liquidity to users of various crypto projects. It was established in 2013 and, like Bolt, which was founded a year later, is headquartered in San Francisco.
Do you expect any other potential acquisition deals in the crypto and fintech space to be dropped? Let us know in the comments section below.
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