Crypto Mining Firm Prime Blockchain Cancels $1.2B SPAC

Blank-check company 10X Capital Venture Acquisition Corp and crypto mining outfit Prime Blockchain have called off their planned $1.2 billion merger, yet another sign of the waning enthusiasm for special purpose acquisition companies (SPACs).

Reuters reported on the cancellation Monday (Aug. 15), noting that 10X provided no reason for the move and that the decision was mutual.

Monday’s announcement came six weeks after social investing network eToro Group and SPAC FinTech Acquisition Corp. V announced that they’d call off their planned merger after apparently failing to meet closing conditions on time.

When the plan was announced in March of 2021, eToro was anticipating a valuation of $10.4 billion. FinTech V Chairman Betsy Cohen pointed to the strength of eToro as an online social trading platform outside the U.S. along with its numerous income streams.

As PYMNTS has noted, eToro was one of a series of crypto companies scuttling SPAC plans recently as these firms face a stricter regulatory environment. In June, just five of the 14 crypto SPAC deals announced since 2019 had closed.

And it’s not just crypto companies. After the heyday of 2021, SPAC activity has grown more and more muted. For example, in June, our research showed 17 SPACs in the banking sector, compared to 66 in 2021.

SPACs began to see increased scrutiny this year because of their projections made in financial documents. We’ve noted before that nearly 75% of financial restatements made to the SEC in 2021 came from SPACs.

In related news, investment firm Galaxy Digital announced Monday it had terminated its $1.2 billion acquisition agreement with digital assets platform BitGo.

The company said it ended the deal after BitGo failed to meet a July 31 deadline to turn over audited financial statements for last year that adhere to the terms of the sale.

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NEW PYMNTS SURVEY FINDS 3 IN 4 CONSUMERS WITH STRONG DEMAND FOR SUPER APPS

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