Crypto mergers and acquisitions likely to continue to accelerate
by: Dynasty GI2021-10-12
The number of crypto-related M&As this year is already double the number registered in 2020 and analysts believe the trend will continue into the next year.
According to specialist site The Block, this trend reflects the higher level of maturity in the crypto industry, with larger companies able to buy up smaller outfits. Data provided by Architect Partners suggest that there have been 126 crypto mergers so far this year, representing more than double the total for 2020. This year’s mergers are averaging US$ 629 million.
"“I regularly state that what we are seeing now in the financial sector is what the world witnessed in the 90s when the internet moved from niche to mainstream, with lots of mergers and acquisitions and unsuccessful moves, as we remember from acquisitions followed by flops like MySpace. As the crypto sector matures, we are likely to see more mergers and market consolidation that come with the process”, remarked Eduardo Carvalho, the founder and CEO of Dynasty Global Investments AG."
According to the analysis by Architect Partners, the trend is being pushed by businesses linked to investment and trading of crypto assets, totalling 42 M&As, followed by the mining and staking category, with 35 deals.