California-based online payments company Bolt is pulling out of a deal to acquire cryptocurrency provider Wyre. News of the canceled deal, which was agreed to earlier this year, comes amid a sharp drop in valuations in the crypto and fintech sectors.
Bolt Launches $1.5 Billion Wyre Acquisition Plan
Bolt Financial, a U.S. technology company with headquarters in San Francisco, said Friday that it has removed a agree to buy crypto infrastructure provider Wyre Payments, Reuters reported on Saturday. A definitive deal to acquire Wyre for $1.5 billion is reported to be announced by the e-commerce platform in early April.
The deal is billed as one of the biggest crypto business acquisitions this year. After a funding round in January, Bolt was last valued at $11 billion. However, the report noted that high-tech valuations have come under increased pressure as investor sentiment has been affected by recession fears and negative stock market developments.
Payment processing company Stripe and fintech bank Klarna have also slashed valuations significantly, Reuters pointed out. Industry valuations have dropped significantly in the crypto sector as well as during the market plunge over the past months.
In a published statement, Bolt emphasized they will continue their partnership with Wyre. The online payments company made it clear that remaining independent would allow it to focus on its core businesses. Company CEO Maju Kuruvilla is quoted as saying:
We will continue our existing commercial partnership with Wyre to pave the way for crypto integration into our ecosystem, bringing Wyre’s innovative crypto infrastructure to the world.
Wyre provides blockchain-connected payment APIs and cryptographic tokens, forex, and crypto liquidity to users of various crypto projects. It was founded in 2013 and like Bolt, founded a year later, has its headquarters in San Francisco.
Do you expect other potential acquisitions in the crypto and fintech space to be scrapped? Let us know in the comments section below.
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