The blockchain payment company Roxe will be announced via a SPAC agreement of 3.6 billion dollars

June 21 (Reuters) – Blanks check company Goldenstone Acquisition Ltd (GDST.O) said late Tuesday that it has entered into an agreement with blockchain-based payment company Roxe Holding Inc to disclose it for a total business value of around $ 3.6 billion.

The agreement compensates for an unfavorable market environment with cryptocurrencies that fall in value and investors largely lose interest in special acquisition companies (SPACs) of this type, partly due to disappointing returns.

Reuters had previously reported on the agreement and quoted people who are familiar with the case. None of the Roxe investors plan to sell their holdings, according to sources.

Roxe shareholders will roll 100% of the equity into the combined company, and certain shareholders are entitled to an earnout for additional shares in the combined entity if certain share price targets are reached, Goldenstone said in a statement.

Goldenstone raised just $ 57.5 million in its listed offering in March this year, which is part of the deal’s value.

Roxe was founded in 2019 and connects banks, payment companies and money transfer companies, and facilitates cross-border payments by using their private blockchain tokens. It does not use cryptocurrencies whose market value has been volatile.

Bitcoin fell below $ 20,000 on June 18 for the first time since December 2020. It has plunged around 60% this year. The total crypto market has fallen to around $ 900 billion, down from a record high of $ 3 trillion in November. L1N2Y503U

This would be Roxes founder Haohan Xu’s second SPAC merger this year after he agreed to announce the crypto exchange Apifiny earlier this year in a $ 530 million deal.

Around 600 SPACs that went public in the last couple of years are still trying to complete agreements, according to data from Dealogic. Just over six months into 2022, 26 SPAC mergers have been completed in the United States, according to data from industry tracker Spac Research. This compares with a total of 18 throughout 2021, and 7 in 2020.

Upon completion of the transaction, Goldenstone will be renamed Roxe Holding Group Inc and listed on Nasdaq.

Reporting by Echo Wang in New York; Further reporting by Maria Ponnezhath in Bengaluru; Edited by Howard Goller and Shailesh Kuber

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