Crypto firm Prime Blockchain, 10X SPAC end US$1.25b merger deal

BLANK-CHECK vehicle 10X Capital Venture Acquisition Corp II said on Monday (Aug 15) it has mutually ended its US$1.25 billion merger deal with crypto mining and infrastructure company Prime Blockchain.

The termination underscores receding enthusiasm for special purpose acquisition companies (SPACs) that became the preferred route to stock markets for startups looking to sidestep a traditional initial public offering.

The companies, which had announced their merger in April, did not give a reason for the latest move, but markets this year have been reeling from sky-high inflation and recession fears that have prompted several companies to pull the plug on their SPAC deals.

Cooler-than-expected inflation data last week offered some hope, but analysts have cautioned against too much optimism, arguing that the Federal Reserve would seek a more solid proof of inflation receding before slowing the pace of its rate hikes. REUTERS