Bitcoin miner Prime Blockchain (PrimeBlock) and SPAC-company 10X Capital Venture Acquisition Corp II terminated the merger agreement valued at $1.25 billion, according to a report filed with the SEC.
PrimeBlock did not provide a reason for the termination.
News of talks between the mining firm and 10X Capital about acquiring the latter to take it public became known in November 2021.
On April 1, 2022, the parties announced that they had reached an agreement. It was expected that after the merger, 10X Capital would be renamed Prime Blockchain, and the combined company valued at $1.25 billion would continue to trade on Nasdaq.
Reuters noted that the termination of the merger underscores waning enthusiasm for SPAC acquisitions. Recently, this had been a popular way for startups to go public, avoiding a traditional IPO.
According to SPACInsider, 74 SPAC deals were completed in the United States in 2022, down from 613 the previous year. The average size of SPAC offerings also declined from $265 million to $168 million.
Against the backdrop of the crypto market downturn, the shares of public mining companies tumbled. For example, Marathon Digital Holdings’ stock has fallen from $33 to $16.50 as of writing. Core Scientific’s shares fell from $11 to $3.
In June, most public mining companies began unloading their bitcoin holdings, liquidating 14,600 BTC.
In July, the trend continued: miners sold 5,767.9 BTC with a total mined of 3,478 BTC.
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