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Cash-strapped digital currency firm Zipmex could miss out on its widely anticipated $100 million acquisition from venture capital firm V Ventures, according to a Bloomberg report.

Per the report, V Ventures missed the deadline to make a $1.25 million payment due on March 23. The payment was supposed to provide Zipmex with working capital over the coming months, sparking wide speculation that the deal could fall through the cracks.

“The rescue plan for embattled crypto exchange Zipmex is beginning to fray after the company failed to receive the most recent payment due under a $100 million venture capital buyout,” the Bloomberg report read.

For Zipmex, the implication of the missed payment is pretty grim, as the troubled exchange revealed in a letter that it will begin selling off its entire Zipmex Technology Unit to stay afloat. The liquidation of the unit indicates that Zipmex might be announcing a new wave of job cuts in the future, but its letter appears to give a measure of hope to its stakeholders.

Zipmex noted that despite the missed payment, the firm still had cash reserve to make salary payments for staff in Indonesia, Singapore, and Thailand. However, the letter failed to mention whether or not V Ventures will be making the $1.25 million payment.

It is important to note that since V Venture and Zipmex entered into an acquisition deal in December 2022, this is the fourth time the VC fund will be missing the deadline for payments. V Ventures, a subsidiary of Thoresen Thai Agencies (TTA), is angling for a 90% stake in the troubled digital currency exchange in a deal worth $100 million split between cash and digital assets.

Things fell apart for Zipmex following the collapse of its planned acquisition by Coinbase (NASDAQ: COIN) and liquidity issues triggered by its exposure to Babel Finance and Celsius. The firm received relief from the courts through a three-month moratorium from creditors, but the company still faces a mountain to climb.

Deals are tearing at the seams

Digital currency mergers and acquisitions have been facing a difficult time due to a prolonged bear market and uncertain macroeconomic conditions. Thai lender SCBX abandoned its plans to purchase Bitkub, while FTX and Voyager were unable to reach even ground over a planned deal.

U.K.-based digital currency exchange Ziglu is still reeling from the effects of its failed acquisition by Robinhood (NASDAQ: HOOD), leading to the sudden exit of its CEO. Currently, the firm is trying to raise funds to remain afloat while it intensifies its search for new buyers.

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