Mining Company PrimeBlock and VC Firm 10X Terminate $1.25b Merger
- The two firms terminated their agreement on August 12 by mutual consent
- Uncertain crypto and mainstream market conditions in recent months were likely a factor
Bitcoin miner PrimeBlock has terminated plans to be listed through a merger with venture capital company 10X Capital Venture Acquisition. The two firms terminated their agreement on August 12 by mutual consent, a US Securities and Exchange Commission filing shows.
The merger was expected to take place in the second half of this year, generating an impressive $1.25 billion in enterprise value.
A gloomy market could be the reason
While the decision hasn’t officially been justified, it’s likely uncertain crypto and mainstream market conditions in recent months were a factor.
Blank check companies are turning away from crypto
In the wake of the crypto market downturn, the attraction to crypto firms has waned. Blank check-type mergers and acquisition deals were a prevalent means for these firms to access public stock markets up until recently.
In analogical circumstances, eToro and FinTech Acquisition Corp. V planned a $10.4 billion merger, after which the user-friendly trading platform would have gone public. However, the deal was terminated, with Fintech Chair Betsy Cohen calling it “impracticable.”