Roxe Holdings was reportedly scheduled to go public in a $3.65 billion merger deal with Goldenstone acquisition

Roxe Holdings was reportedly scheduled to go public in a $3.65 billion merger deal with Goldenstone  ...

According to people familiar with the matter, blockchain-based financial firm Roxe Holdings is on the verge of reaching a deal to merge with Goldenstone Acquisition Limited at a combined valuation of $3.65 billion.

The transaction sustains an unfavorable market environment, with cryptocurrency markets rising in value, and investors are losing interest in such special-purpose acquisition companies, partly due to poor returns.

According to sources, none of Roxe investors intends to sell their shares. Goldenstone raised only $57.5 million (nearly Rs. 440 crore) in its initial public offering in March this year, a fraction of the deals value. Roxe investors are also entitled to an increase for additional shares in the combined company if certain stock price targets are met.

Sources said a compromise might be announced later on Tuesday, asked if they had written anything until the day before.

Roxe, which was founded in 2019, has partnered with banks, payment companies, and remittance corporations, which are facilitating cross-border payments using their private blockchain tokens. It does not use cryptocurrency, whose market value has been unstable.

For the first time since December 2020, Bitcoin fell below $20,000 (nearly Rs. 15 lakh) on June 18, causing it to fall by around 60 percent this year. The overall cryptocurrency market has dropped to $900 billion (nearly Rs. 7,000 crore).

This would be the second SPAC merger of Roxes founder Haohan Xus this year after agreeing to take crypto exchange Apifiny public earlier this year in a $530 million (nearly Rs. 4,100 crore) agreement.

According to Dealogic, about 600 SPACs that went public in the past couple of years are still trying to finish deals. 26 SPAC mergers have been terminated in the United States, according to industry tracker Spac Research. That compares to a total of 18 in the whole of 2021, and seven in 2020.

In 2022, Thomson Reuters will release its report.

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