Bolt Financial Inc, a US based checkout firm on Friday announced that it has dropped the $1.5 billion accusation deal with Wyre Payment Inc. This big statement has come amid the crypto market downturn.
Is falling crypto market affecting deals?
As per the report, Bolt decided to take this big step as the valuation of the fintech and crypto market is plunging over time. It mentioned that Bolt was valued at around $11 billion after the funding round at the beginning of this year.
However, as the global crypto market downturn is on a rise, tech companies that are valued very high have witnessed huge pressure. The investor sentiments have also shrunk regarding digital assets as the industry is trading in a fear of emerging recession.
The report mentioned that payment processors like Stripe Inc and Klarna Bank AB have also taken heavy valuation cuts. This has been the direct result of the recent price crash in the crypto market.
Bolt-Wrye continues to work together
Meanwhile, Bolt in a statement mentioned that it will strive to carry on its partnership with Wyre. It added that remaining independent will surely allow it to focus on its specified areas.
Wyre will still be helping Bolt with the crypto integration into their ecosystem. While it will thrive to bring innovative crypto infrastructure to the industry.
Earlier, the Wall Street Journal reported that this would the mega deal in the crypto market. The merger and acquisition deals were on pace in the US crypto sector since 2021. However, the first quarter of 2022 registered some deals of around $1.25 billion. While the whole of 2021 recorded $4.9 billion in these kinds of deals.
However, the crypto market which boomed in 2021 shed around 2 trillion from its market cap. All of the top cryptos are trading down by almost 80% from their all time high. The market recently went on to dip under the crucial $1 trillion market cap mark.