Bolt, meantime, has issued a statement promising to maintain its collaboration with Wyre.
Wyre will continue to support Bolt in developing its crypto ecosystem.
On Friday, US-based payments firm Bolt Financial Inc. said it was canceling its $1.5 billion acquisition deal with Wyre Payment Inc. The cryptocurrency market decline coincides with this major announcement.
According to the report, Bolt made this bold move because it saw the value of the fintech and cryptocurrency business falling. The report states that following the investment round at the beginning of the year, Bolt was valued at around $11 billion.
Direct Consequences of Sluggish Market
Extreme pressure has been exerted on highly valued technology businesses as the global crypto market declines. As the sector trades in the shadow of an impending recession, investor enthusiasm for digital assets has waned.
The reports also claimed that the valuations of other payment processing companies, such as Stripe Inc and Klarna Bank AB, had dropped significantly. This is a direct consequence of the current decline in cryptocurrency prices.
Bolt, meantime, has issued a statement promising to maintain its collaboration with Wyre. It went on to say that maintaining its autonomy will enable it to better concentrate on the things it does best. Wyre will continue to support Bolt in developing its crypto ecosystem. While flourishing, it will introduce cutting-edge crypto infrastructure to the market.
The Wall Street Journal had earlier predicted that this would be the cryptocurrency industry’s “mega deal.” Since 2021, the pace of mergers and acquisitions in the United States cryptocurrency industry has been rapid. However, there were a few transactions for around $1.25 billion in the first quarter of 2022. While total transactions in 2021 were $4.9 billion. The booming cryptocurrency market of 2021, meanwhile, saw its market worth drop by almost $2 trillion.