Bolt Financial, a California-based online payments company, announced on Friday that it has abandoned its agreement to acquire crypto infrastructure provider Wyre Payments for a reported $1.5 billion. The scrapped deal, which was finalized in early April 2022, was considered one of the largest crypto acquisitions this year. However, with recession fears and a steep downturn in the crypto and fintech markets, high-tech valuations have come under immense pressure.
Valuation Turmoil and Market Context
According to Reuters, Bolt was valued at $11 billion after a funding round in January. Since then, investor sentiment has soured due to macroeconomic headwinds and declining equity markets. Major fintech peers such as Stripe and Klarna Bank have also seen significant valuation cuts. In the crypto sector, the situation is even more pronounced, with Bitcoin and other digital assets losing more than 60% of their value since last year's peaks. Wyre, founded in 2013 and headquartered in San Francisco, provides blockchain-linked payment APIs, fiat-to-crypto on-ramps, foreign exchange, and liquidity services to various crypto projects. Bolt, founded a year later, operates an online checkout platform serving merchants.
Bolt's Statement and Future Collaboration
In a statement, Bolt emphasized its decision to focus on core business areas and remain independent. 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 indicates that while the acquisition is off the table, Bolt still sees value in leveraging Wyre's technology through a partnership model rather than full ownership. The two companies have maintained a commercial relationship since March 2022, when Bolt first integrated Wyre’s crypto payment capabilities into its checkout products.
Industry Implications
The cancellation of this mega-deal signals caution among investors and acquirers in the crypto space. With valuations falling rapidly, other pending acquisitions may face renegotiation or termination. Wyre, now left without a buyer, will need to weather the bear market independently. However, its established position in crypto infrastructure could attract interest from other players, possibly at a lower valuation. The broader fintech and crypto M&A landscape is likely to become more conservative in the near term.
Do you expect other potential acquisition deals in the crypto and fintech space to be scrapped? Let us know in the comments below.