Roxe Holding in talks to list on Nasdaq via $3.6 billion SPAC deal

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Goldenstone Acquisition Ltd, a special purpose acquisition company (SPAC), has announced plans to take blockchain-based payment company Roxe Holding Inc.

According to Wednesday’s announcement, SPAC has agreed to a $3.6 billion merger with global blockchain payments company, which will see Roxe listed on Nasdaq under the symbol ROXE. Roxe is a global payments company that offers both business-to-business and consumer payment services, with a focus on blockchain technology.

According to a Reuters report, citing inside sources, no current Roxe shareholders plan to sell their stake after the merger. On Tuesday, Roxe said some shareholders could benefit from earn-outs if the listed share price is met.

The deal comes amid an unfavorable market environment, in which cryptocurrencies have fallen in value and investors have largely abandoned such special purpose acquisition companies due to poor performance. The total cryptocurrency market capitalization has fallen to less than $1 trillion, while Bitcoin (BTC) has now fallen to its lowest level since mid-2021.

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The long crypto slide was driven by concerns over the outcome of many major participants. Sentiment deteriorated on rising inflation and interest rates and weak macroeconomic signals.

Additionally, the deal comes months after Goldenstone’s IPO, which raised approximately $57.5 million in capital. These resources will be used to increase Roxe’s financial reserves. It will also be CEO Haohan Xu’s second major listing deal of the year, having previously struck a $530 million SPAC deal with Apifiny Group.

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Related: Crypto-Focused SPAC Raises $115M in Nasdaq IPO

After a surge in 2020 and 2021, the popularity of SPACs – a typical listing vehicle for several major crypto companies – is declining this year. Following several allegations of fraud, the United States Securities and Exchange Commission (SEC) recently set stricter reporting standards for SPACs.