Online payments company Bolt Financial announced on Friday that it has terminated a definitive agreement to acquire crypto infrastructure provider Wyre Payments. The deal, initially agreed upon in April, was reportedly valued at $1.5 billion and considered one of the largest crypto acquisitions of the year.
Valuation Declines Drive Decision
According to a Reuters report, Bolt stated in a press release that remaining independent would allow the firm to concentrate on its core business areas. The San Francisco-based company was last valued at $11 billion following a funding round in January. However, high tech valuations have since come under increased pressure as recession fears and negative developments in equity markets dented investor sentiment. Payment processor Stripe and fintech lender Klarna Bank have also taken significant valuation haircuts. The crypto sector has not been immune, with valuations dropping substantially during the market downturn over the past months.
Commercial Partnership Continues
Bolt emphasized it will maintain its existing commercial partnership with Wyre. 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 provides blockchain-connected payment APIs, fiat-to-crypto onramps, foreign exchange, and cryptocurrency liquidity to users of various crypto projects. Founded in 2013, Wyre shares its San Francisco headquarters with Bolt, which was established a year later in 2014.
Market Implications
The scrapped deal reflects the challenging funding environment for crypto and fintech firms amid rising interest rates and macroeconomic uncertainty. As risk assets face sharp valuation corrections, other high-profile acquisition agreements may be re-evaluated. Industry observers anticipate more such cancellations or delays in the coming months. Bolt's move signals that even well-capitalized companies are reassessing their expansion plans in the digital asset space.