- eToro and Fintech V have announced that they are canceling a planned agreement for the SPAC merger.
- That offer was first announced in March 2021 and would have raised the valuation of eToro to $10 billion.
- Despite the failure of the agreement, eToro says its underlying business operations remain strong.
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According to a press release from both companies, trading platform eToro has canceled its SPAC agreement with Fintech V.
The SPAC merger was mutually annulled.
The proposed merger of eToro was first announced in March 2021. The offer would have given the firm a valuation of $10 billion and would lead to a public listing on the stock market.
The offer would have seen eToro being acquired by Fintech V, a special purpose acquisition company.
However, various conditions were not met, most notably those related to eToro’s registration details. Both companies failed to complete the transaction by the June 30 deadline.
Fintech V president Beastie Cohen said the deal was canceled “due to circumstances beyond the control of either party.”
Yoni Assia, co-founder and CEO of eToro, lamented that the cancellation was “not the outcome we expected.” However, he added that “the underlying business remains healthy” with a strong balance sheet and 2.7 million funded accounts.
The press release indicates that neither company will pay termination fees to the other as a result of the agreement.
eToro continues to support crypto
Although the SPAC merger with eToro may fail, the company continues to increase its support for cryptocurrency trading.
Originally created as a stock trading platform, eToro began offering crypto trading in some regions in 2014. It has since expanded crypto facilities to other countries – most recently France, which received support for crypto this June.
The platform supports over 70 cryptocurrencies. Recently, it added listings for three new altcoins: Serum (SRM), Amp Token (AMP), and My Neighbor Alice (ALICE).
The company has also funded the crypto ecosystem. In April, eToro established a $20 million program to support the creators of the non-fungible token. In late 2021, it contributed $1 million to the Gooddollar Universal Basic Income Project.
eToro’s main competitor is Robinhood, which similarly offers crypto and stock trading—though eToro is often said to focus a bit more on cryptocurrency.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.