Decline in the crypto market; Bolt drops $1.5 billion deal
Bolt Financial Inc, a US cashier firm announced on Friday that it has dropped the $1.5 billion plea agreement with Wyre Payment Inc. This major statement has come amid the downturn in the crypto market.
Does Falling Crypto Market Affect Deals?
According to the report, Bolt decided to take this big step as the valuation of the fintech and crypto market plummets over time. It mentioned that Bolt was valued at around $11 billion after its funding round at the beginning of this year.
However, as the downturn in the global crypto market is on the rise, tech companies that are valued very highly have been witnessing tremendous pressure. Investor sentiment has also shrunk in digital assets as the industry trades on fears of another recession.
The report mentioned that payment processors such as Stripe Inc and Klarna Bank AB have also taken heavy value cuts. This has been the direct result of the recent price crash in the crypto market.
Bolt-Wrye continue to work together
Meanwhile, Bolt mentioned in a statement that they will strive to continue their collaboration with Wyre. It added that remaining independent will certainly allow it to focus on the specified areas.
Wyre will continue to help Bolt with the crypto integration into their ecosystem. While it will thrive in bringing innovative crypto infrastructure to the industry.
Earlier, the Wall Street Journal reported that this would be the mega deal in the crypto market. The M&A deals have been ramping up in the US crypto sector since 2021. However, the first quarter of 2022 recorded some deals worth around $1.25 billion. While the whole of 2021 recorded 4.9 billion dollars in this type of agreement.
However, the crypto market that boomed in 2021 lost around 2 trillion from its market cap. All the top cryptos are trading down almost 80% from all time highs. The market has recently dipped below the crucial $1 trillion market cap.
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