Prime Blockchain and 10X Capital Venture terminate merger agreement

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The uncertainty of the cryptocurrency sector, high inflation and rising interest rates have led to the termination of the Prime Blockchain and 10X Capital Venture merger agreement.

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The US Securities and Exchange Commission (SEC) was notified of the termination of the transaction and the withdrawal of the decision to merge Prime Blockchain and 10X Capital Venture, and, accordingly, the cancellation of the listing on the Nasdaq stock exchange market of the combined public cryptocurrency company with assets of $ 1.25 billion .

The Prime Blockchain startup positioned itself as a company that promotes its services for a diversified Web3 infrastructure and crypto economy. The firm, whose CEO is former Goldman Sachs investment banking veteran Gaurav Budharani, provides technical solutions for bitcoin mining and storage, as well as DeFi.

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10X Capital Venture is a Specialized Acquisition Company (SPAC). Such companies do not conduct real operations until the moment of the merger. Their main goal is to collect and accumulate investment capital for the acquisition of a private company, after which it becomes public. Typically, the disclosure of the name of the “target” SPAC occurs only when the participants in the transaction are ready to submit documentation for SEC approval.

The parties do not disclose the reasons that prompted the companies to terminate the transaction. Indirectly, 10X Capital Venture confirmed that high inflation and rising interest rates have led to a general cooling of activity in the SPAC markets. According to SPACInsider, the number of SPAC IPOs fell to 64 in the first half of the year, compared to 613 in the same period last year.

Earlier, Galaxy Digital terminated the agreement to acquire custody services operator BitGo. In response, BitGo is preparing to sue Galaxy and claims it is owed a $100 million termination fee.

Source: Bits

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