The online payments company Bolt, based in California, has decided to back out of an agreement to purchase the cryptocurrency supplier Wyre. The announcement of the deal’s cancellation, which had been agreed to earlier this year, comes at a time when valuations in the cryptocurrency and fintech industries are both in freefall.
Bolt has decided to abandon its plan to acquire Wyre for $1.5 billion.
According to a report published by Reuters on Saturday, the American technology company Bolt Financial, which has its headquarters in San Francisco, announced on Friday that it had abandoned plans to acquire the cryptocurrency infrastructure provider Wyre Payments. At the beginning of April, the e-commerce platform made public an announcement regarding a definitive deal to buy Wyre for a price that was rumored to be $1.5 billion.
This transaction was regarded as one of the most significant acquisitions of a crypto business so far in 2018. Bolt was most recently valued at $11 billion following a fundraising round that took place in January. However, the paper states that valuations of high tech companies have now been under significant pressure as a result of investor sentiment being impacted by worries of a recession and bad events in the equities markets.
According to Reuters, payment processor Stripe and financial technology company Klarna Bank have also experienced large reductions in their valuations. During the recent decline in market activity over the past few months, industry values have also experienced a major decline in the crypto sector.
In a statement that was made public, Bolt stressed the importance of maintaining its collaboration with Wyre. The company that operates online checkouts elaborated that maintaining its independence will enable it to concentrate on the most important aspects of its operation. The Chief Executive Officer of the company, Maju Kuruvilla, was cited as saying:
We are committed to maintaining our current commercial cooperation with Wyre in order to pave the way for the incorporation of cryptocurrencies into our ecosystem and to bring Wyre’s cutting-edge cryptographic infrastructure to the rest of the globe.
Users of a variety of cryptocurrency projects can take advantage of Wyre’s blockchain-connected payment APIs as well as its fiat-to-cryptocurrency onramps, foreign exchange, and cryptocurrency liquidity. It began operations in 2013, and much to Bolt, which was created a year later, it currently has its headquarters in San Francisco.