Morgan Stanley says changing to Proof of Stake might not solve Ethereum's scaling problems. An equity strategist for Morgan Stanley claims Ethereum beacon-mainnet merge will cause demand for graphics processors to plummet in the coming months. The Ethereum platform has been undergoing a parade of testnets preparing for its merge with Beacon Chain. This merge is a move to facilitate the blockchain's transition from operating a Proof of Work model, to Proof of Stake. The PoW consensus model understandably…
Blockchain payments company Roxe Holding has entered a deal with Goldenstone Acquisition, a special-purpose acquisition company (SPAC). The firm unveiled this news through a press release on June 21. Through this deal, Roxe will become a publicly-traded company on the Nasdaq stock exchange.
According to the news release, the transaction is subject to approval by Goldenstone stockholders and other closing conditions, including regulatory approvals. Upon the completion of this deal, the combined company will operate as Roxe Holding Group Inc.
The firm should have an enterprise value of approximately $3.6 billion. Its stock will trade on Nasdaq under the ticker symbol ROXE.
As part of this deal, none of Roxe’s investors plan to sell their stakes. The stakeholders will roll 100% of their equity into Roxe Holding Group Inc. Per the merger agreement, some Roxe stakeholders have the potential to receive an earnout for additional shares in the combined entity if it meets certain price targets.
Bullish about the prospects of this merger, Roxe Chief Business Officer Josh Li said,
This is an important milestone for Roxe. Our merger with Goldenstone will augment our ability to accelerate our growth and empower users to streamline payments, financial transactions and value exchange across the globe.
SPACs Remain a Viable Option for Blockchain Firms to Go Public
Explaining why Goldenstone Acquisition entered a merger deal with Roxe, the company’s CEO Eddie Ni said,
Roxe is a leading blockchain-based open payments network and we strongly believe in the tremendous opportunity for blockchain to transform payments, and we believe Roxe’s adherence to a compliant, robust strategy will make it a winner in this track.
This news comes as the crypto market continues putting up a lackluster performance. Bitcoin (BTC), the largest crypto by capitalization, is currently trading at $20,266.40. As a result of the persistent bear market, investors have been losing interest in SPACs involving crypto firms.
However, it is worth noting that Roxe has no direct involvement with the crypto space. The company leverages a permissioned model, which prevents it from interacting with existing cryptos like Bitcoin (BTC). Instead, Roxe issues proprietary private tokens to enable money transfers and remittances.