Online payments company Bolt Financial announced on Friday that it has terminated the definitive agreement to acquire Wyre Payments, a crypto infrastructure provider, for a reported $1.5 billion. The deal, announced in early April 2022, was considered one of the largest crypto business acquisitions this year but has fallen victim to the severe valuation downturn in the crypto and fintech markets.
Deal Background and Market Turmoil
According to a report by Reuters, Bolt — which was last valued at $11 billion after a funding round in January — had agreed to acquire Wyre in a bid to expand its crypto capabilities. However, high-tech valuations have come under intense pressure since then, driven by recession fears and negative developments in equity markets. Payment processor Stripe and fintech firm Klarna Bank have also taken significant valuation cuts, Reuters noted. The crypto sector has been hit particularly hard, with prices of major cryptocurrencies falling sharply and investor sentiment souring.
Official Statement: Partnership Continues
In a press release, Bolt emphasized that it will continue its existing commercial partnership with Wyre. The company explained that remaining independent allows it to concentrate on its core business areas. Bolt CEO Maju Kuruvilla stated: “We will continue our existing commercial partnership with Wyre to pave the path of crypto integration into our ecosystem, bringing Wyre’s innovative crypto infrastructure to the world.”
Wyre, founded in 2013 and also based in San Francisco, offers blockchain-connected payment APIs, fiat-to-crypto on-ramps, foreign exchange, and cryptocurrency liquidity to various crypto projects. Bolt, founded in 2014, provides online checkout solutions. The two companies had been working together on integrating crypto payments, and the termination of the acquisition does not affect their ongoing collaboration.
Industry Implications
The scrapped acquisition reflects a broader trend in the crypto and fintech landscape: many high-valuation deals are being reconsidered or cancelled as market conditions deteriorate. Analysts expect further pullbacks in merger and acquisition activity in the coming months. For Wyre, remaining independent may allow it to pursue partnerships with other payment platforms more flexibly.
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