Tags in this story
Acquisition, Blockchain, Bolt, Crypto, crypto sector, Cryptocurrencies, Cryptocurrency, Deal, Fintech, fintech industry, Online payments, buy, Wyre
Payments Firm Bolt Scraps Deal to Acquire Crypto Company Wyre – Bitcoin News
California-based payments company Bolt is pulling out of a deal to buy crypto provider Wyre. News of the scrapped deal, which was agreed earlier this year, comes amid falling valuations in the crypto and fintech sectors.
Bolt abandons plan for $1.5 billion Wyre acquisition
Bolt Financial, a US technology company headquartered in San Francisco, said on Friday it had scrapped a deal to buy crypto infrastructure provider Wyre Payments, Reuters reported on Saturday. A definitive agreement to acquire Wyre for a reported $1.5 billion was announced by the e-commerce platform in early April.
The deal was considered 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 notes that high-tech valuations have since come under increased pressure as investor sentiment was hit by recession fears and negative stock market developments.
Payment processor Stripe and fintech Klarna Bank have also taken significant value cuts, Reuters pointed out. Industry valuations have also fallen significantly in the crypto sector during the market downturn in recent months.
In a released statement, Bolt emphasized that they will continue their collaboration with Wyre. The online cashier elaborated that remaining independent would allow it to focus on its core areas. The company’s CEO Maju Kuruvilla was 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 offers blockchain-connected payment APIs and fiat-to-crypto onramps, currency and cryptocurrency 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 other potential acquisition deals in the crypto and fintech space to be scrapped? Let us know in the comments section below.
Image credit: Shutterstock, Pixabay, Wiki Commons, Christophe Jossic
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or an endorsement or recommendation of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on content, goods or services mentioned in this article.
