:U.S. online checkout company Bolt Financial Inc said on Friday it scrapped its $1.5 billion deal to buy cryptocurrency infrastructure provider Wyre Payments Inc, amid plunging valuations in crypto and fintech businesses.
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.
Bolt said in a statement it will continue its partnership with Wyre, adding that remaining independent would allow it to focus on its core areas.
“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.