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HomeNewsMining Company PrimeBlock and VC Firm 10X Terminate $1.25b Merger
Mining Company PrimeBlock and VC Firm 10X Terminate $1.25b Merger

Mining Company PrimeBlock and VC Firm 10X Terminate $1.25b Merger

Last updated 23rd Sep 2022
Disclosure
  • 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.”

Daniela Kirova

Daniela Kirova

Daniela is a writer at Bankless Times, covering the latest news on the cryptocurrency market and blockchain industry. She has over 15 years of experience as a writer, having ghostwritten for several online publications in the financial sector.