Bolt Financial, the San Francisco-based online payments company, announced on Friday that it has terminated its agreement to acquire crypto infrastructure provider Wyre Payments, a deal that was first revealed in early April with a reported value of $1.5 billion. The decision comes as valuations across both the crypto and fintech industries have suffered severe declines in recent months.
Acquisition Collapse: The Valuation Crash
Bolt was last valued at $11 billion after a funding round in January 2022. However, high-tech valuations have since come under intense pressure, driven by recession fears and negative equity market developments. Payment processors like Stripe and fintech lender Klarna Bank have also seen significant valuation cuts. The crypto sector itself has experienced a dramatic market downturn, forcing Bolt to reconsider the expensive acquisition.
Partnership Continues, Not a Complete Breakup
In a statement, Bolt emphasized that it will continue its existing commercial partnership with Wyre. CEO Maju Kuruvilla said: 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.
This suggests that while the acquisition is off, the business relationship remains intact.
Wyre's Role and Broader Implications
Founded in 2013, Wyre provides blockchain-connected payment APIs, fiat-to-crypto onramps, foreign exchange, and cryptocurrency liquidity for various crypto projects. Both Bolt and Wyre are headquartered in San Francisco. The scrapped deal may signal a broader trend of failed acquisitions in the crypto and fintech space as market conditions continue to worsen, potentially leading to further deal terminations.