Blockchain-based payment company Roxe has announced a $3.6 billion merger deal with Blank check company Goldenstone Acquisition Ltd (GDST).
The deal is coming when the crypto industry is witnessing one of its worst periods. Crypto assets keep losing their value while investors are losing interest in special purpose acquisition companies (SPACs). According to sources close to the matter, the Roxe investors still want to maintain their stakes in the company, but it will be rolled over into the new entity.
Goldenstone Recently Completed A $57.5 Million IPO
The Roze stockholders will transfer 100% of their equity into the combined entity while some stockholders will be entitled to earnout for additional shares. However, this will be subject to meeting certain stock price targets.
Earlier this year, Goldenstone increased its valuation after raising $57.5 million in its initial public offering (IPO).
Roxe began operations three years ago by connecting remittance firms, banks, and payment firms. The company also facilitates cross-border payments through its private blockchain tokens. Roxe does not use crypto assets, which have lost so much value in the market in the past seven months.
For the first time since December 2021, Bitcoin’s value dropped to below $20,000 on June 18. The most valuable cryptocurrency in the world has lost more than 60% of its value since the beginning of the year. Overall, the crypto market has lost nearly $900 billion from its $3 trillion value in November.
Earlier this year, Roxe’s founder Haohan Xu entered a merger deal with crypto exchange Apifiny in a $530 million deal.
Roxe To Be Listed On Nasdaq
Despite the large number of SPACs going public, many of them are yet to complete their deals. According to data from Dealogic, about 600 SPACs that went public have not yet completed their deals. In the US alone, 22 SPAC mergers that went public this year have terminated their deals. This is higher than 7 in the whole of 2021 and 18 in 2021.
But Goldenstone and Roxe assured that their merger will be one of the successful ones since everything has been put in place for its completion. Once the deal closes, Goldenstone will be listed on Nasdaq and renamed Roxe Holding Group Inc.
