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In a joint decision with acquisition firm, eToro to end its $10 billion SPAC merger

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According to reports, the firm is looking for a new investment round that would imbue more funds at a valuation that is 50% less than it was a year ago.

FinTech Acquisition Corp. V, a special-purpose acquisition company (SPAC), stated on Tuesday that it had reached a mutual agreement to end its planned acquisition of Israeli crypto exchange eToro. Fintech V chairman Betsy Cohen explained the move as follows:

“eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum. Although we are disappointed that the transaction has been rendered impracticable due to circumstances outside of either party’s control, we wish [CEO] Yoni and his talented team continued success.”

The SPAC buyout of eToro by Fintech V, valued at $10 billion, was disclosed last year by the two firms. But it seems like eToro has fallen into problems, possibly as a result of the current bear market in cryptocurrencies, and needs money to improve its functioning. A private fundraising round of $800 million to $1 billion, valued at $5 billion, is apparently something eToro is thinking about.

Compared to Fintech V, which has around $250 million in cash kept in trust and is traded on the Nasdaq exchange. Fintech V’s only objective is to unite with a private company so that it can “receive” public listing rights. Yoni Assia, co-founder and CEO of Toro, provided the following assurance to the public regarding the condition of eToro’s overall business:

“Our balance sheet is strong and will continue to balance future growth with profitability. We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time.”

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Written by Swapcoin Today

A virtual currency/digital exchange platform and Merchant Payment Service provider which provides the facility for merchants/customers on accepting crypto

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