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.