Online checkout software provider Bolt agreed yesterday to buy US-based cryptocurrency payment technology developer Wyre in a $1.5bn deal that would allow corporates Kraken, OK Group, China 9fBank and Baofoo to exit.
Wyre’s core product is a software tool called Checkout which enables users to switch between fiat and cryptocurrencies, giving crypto-focused applications easier access to ordinary customers.
The acquisition means Bolt will be able to offer cryptocurrency payment options to users as part of its overall offering, transferring its one-click checkout system to crypto transactions. It will also give corporate customers greater ability to accept digital currencies as payment and convert them to fiat money.
The deal, the largest merger yet in the crypto sector not linked to a special purpose acquisition company, comes just days after Bolt’s largest competitor, Fast, announced it will be shuttering having failed to raise new funding. Founder and chairman Ryan Breslow recently told Axios that Bolt has managed to avoid such trouble by aggressively pursuing customers and sealing deals.
Maju Kuruvilla, Bolt’s chief executive, said: “Our merchant and retail partners expect us to always be innovating on their behalf – because their customers demand it. That is why it is such a thrill to announce this acquisition, which is yet another step that Bolt has taken to improve the buying experience.
“This acquisition will pave the way for seamless, secure crypto transactions and NFT (non-fungible token) enablement for our retailers. Both consumers and retailers will benefit from a friction-free buying experience that supports crypto and NFT natively.”
Wyre last raised money in January 2021, when Stellar Development Foundation invested $5m as part of a wider round that reportedly reached $7m and which included Draper Associates and Great Oaks Venture Capital.
The company had previously closed $11m in series B funding from digital currency exchange Kraken, blockchain technology developer OK Group, Pantera Capital, Boost VC, Fifth Era and Nice Capital the previous year.
Financial technology provider 9fBank and digital payment technology producer Baofoo had joined Amphora Capital, Draper Associates, Digital Currency Group and unnamed others to supply $5.8m in series A financing for Wyre in 2016, following $2.5m in earlier financing according to securities filings.
