On Tuesday, particular objective acquisition firm (SPAC) FinTech Acquisition Corp. V introduced that it terminated its purposed takeover of Israeli cryptocurrency trade eToro by way of a bilateral agreement. In explaining the choice, Fintech V chairman of FinTech V Betsy Cohen stated:
“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.”
Last yr, eToro and Fintech V introduced the SPAC takeover valuing the previous at $10 billion. However, it seems that eToro has run into difficulties, presumably due to the continuing cryptocurrency bear market, and is in want of a capital infusion to improve its operations. eToro is reportedly contemplating a non-public funding spherical of $800 million to $1 billion, valuing the firm at $5 billion.
Related: 6 Questions for Yoni Assia of eToro – Cointelegraph Magazine
In comparability, Fintech V, which is traded on the Nasdaq trade and whose sole objective is to merge with a non-public firm so the latter can “receive” public itemizing standing, has about $250 million in money held in belief. Nevertheless, Yoni Assia, co-founder and CEO of Toro, assured the general public concerning the state of eToro’s underlying enterprise:
“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.”