Bolt Cancels $1.5B Acquisition Deal of Wyre Payment
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- Bolt has since released a statement promising to continue working with Wyre.
- Wyre continues to support Bolt in the development of its crypto ecosystem.
On Friday, US payments company Bolt Financial Inc. announced it was canceling a $1.5 billion acquisition of Wyre Payment Inc. The fall in cryptocurrency markets coincides with this big announcement.
According to the report, Bolt made this bold move as it saw the value of its fintech and cryptocurrency business plummet. According to the report, Bolt’s value after the investment round at the beginning of the year was about 11 billion dollars.
Direct consequences of a slow market
Prestigious tech companies have come under extreme pressure amid the decline in global crypto markets. As the industry trades in the shadow of an impending recession, investor enthusiasm for digital assets has waned.
The reports also claimed that valuations of other payment processing companies such as Stripe Inc and Klarna Bank AB had fallen significantly. This is a direct result of the current drop in cryptocurrency prices.
Bolt has since released a statement promising to continue working with Wyre. It went on to say that maintaining its autonomy allows it to better focus on the things it does best. Wyre continues to support Bolt in the development of its crypto ecosystem. While it’s booming, it’s bringing a state-of-the-art crypto infrastructure to the market.
The Wall Street Journal had previously predicted that this would be a “mega deal” for the cryptocurrency industry. Since 2021, the pace of mergers and acquisitions in the US cryptocurrency industry has been rapid. However, the first quarter of 2022 saw a few transactions worth about $1.25 billion. In 2021, the total number of transactions was 4.9 billion dollars. Meanwhile, the value of the booming cryptocurrency market of 2021 fell by almost $2 trillion.
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