Bolt, a California-based online payment company, has withdrawn from an agreement to purchase Wyre crypto provider. This news comes amid plummeting crypto and fintech valuations.
Bolt Offers $1.5 Billion Wyre Acquisition
Bolt Financial, a U.S.-based technology company, reported Saturday that it had pulled out of a deal to purchase Wyre Payments crypto infrastructure provider Wyre Payments. The e-commerce platform announced in April that Wyre had agreed to be acquired for $1.5 billion.
This deal was one of the most significant crypto business acquisitions in 2018. Bolt's last valuation was $11 billion after a January funding round. However, the report points out that high tech valuations have come under increasing pressure since then due to investor sentiment being hit by negative developments in equity markets and recession fears.
Reuters also pointed out that Stripe, a payment processor, and Klarna Bank, a fintech bank have both seen significant valuation reductions. During the recent market slump, industry valuations in crypto have also dropped dramatically.
Bolt stated in a statement that it will continue to partner with Wyre. Bolt stated that it would remain independent to allow it to concentrate on its core business areas. Maju Kuruvilla, CEO of the company, was quoted as saying:
Wyre will continue its commercial partnership with us. We will help to make crypto integration easier in our ecosystem and bring Wyre's innovative crypto infrastructure out to the rest of the world.
Wyre provides blockchain-connected payment APIs, fiat-tocrypto onramps, cryptocurrency liquidity, and fiat to crypto onramps to users of different crypto projects. It was founded in 2013, and is headquartered in San Francisco, just like Bolt.
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By: Lubomir Tassev
Title: Payments Firm Bolt Scraps Deal to Acquire Crypto Company Wyre
Sourced From: news.bitcoin.com/payments-firm-bolt-scraps-deal-to-acquire-crypto-company-wyre/
Published Date: Sat, 10 Sep 2022 19:30:16 +0000