In response to falling valuations in the cryptocurrency and fintech industries, U.S. integrated payment company Bolt Financial Inc. announced that it has canceled its $1.5 billion deal to acquire cryptocurrency infrastructure provider Wyre Payments Inc.
San Francisco-based Bolt was last valued at $11 billion after a funding round in January. However, high-flying tech valuations have come under pressure this year as investor sentiment took a hit from fears of a looming recession and a chill in the equity markets.
Payments processor Stripe Inc and fintech Klarna Bank AB have taken significant valuation cuts. Industry valuations have also fallen significantly in the crypto sector during a price crash over the past few months.
In a statement, Bolt said it will keep working with Wyre and added that remaining independent would let it focus on its core strengths.
“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,” Bolt’s CEO Maju Kuruvilla said.
Wyre offers blockchain-connected payment APIs and fiat-to-crypto onramps, foreign exchange, and cryptocurrency liquidity to users of various crypto projects. It was established in 2013 and like Bolt, which was founded a year later, is headquartered in San Francisco.