The big deal by blockchain payment firm Roxe

The big deal by blockchain payment firm Roxe

The deal contrasts with an unfavorable market environment as cryptocurrencies are declining in value and investors increasingly lose interest in private acquisition companies (SPACs), due in part to disappointing returns.

Roxy Holding Inc. is approaching. for Blockchain-based payments from completing a public deal through a merger with Goldenstone Acquisition Ltd totaling $3.65 billion, according to people familiar with the matter.

The deal contrasts with an unfavorable market environment as cryptocurrencies are declining in value and investors increasingly lose interest in private acquisition companies (SPACs), due in part to disappointing returns.

The sources said that none of the Roxy investors intend to sell their stakes. Golden stone raised just $57.5 million in its initial public offering in March of this year, half the value of the deal.

Roxy investors are also entitled to receive dividends for additional shares in the combined company, according to sources, if certain pricing targets are met.

The sources, who asked not to be named before it is officially announced, said the deal could be announced later Tuesday.

Founded in 2019, Roxy connects banks, payment companies, and remittance companies and facilitates cross-border payments using their own blockchain tokens. Do not use cryptocurrencies with fluctuating market values.

Bitcoin fell below $20,000 on June 18 for the first time since December 2020. It has fallen nearly 60% this year. The cryptocurrency market as a whole has fallen to around $900 billion, from a record $3 trillion in November.

This will be the second merger this year by SPAC, founder of Roxy Haohan Xu, after agreeing to a public share offering for $530 million on crypto exchange Apifny earlier this year.

According to Dealogic, about 600 of the SPAC centers that have gone public in recent years are still seeking deals. Just six months later in 2022, 26 SPAC mergers were completed in the United States, according to data from industry tracker Spac Research. That's a total of 18 in 2021 and 7 in 2020.