Thursday, September 29, 2022

Cryptocurrency Mergers & Acquisitions Recorded a Remarkable Surge in 2021 – PwC

The crypto industry continues to get huge investments from M&A deals across the globe, causing a significant growth that pushed the average deal size close to $180 million in 2021 alone, as against $53 million in 2020. This was reported by PwC, one of the biggest accounting companies in the world.

According to the report, the total growth rate of this surge in the crypto industry in 2021 was 4,846%.

This impeccable fundraising in the cryptocurrency M&A last year was partly actualized by Special Purpose Acquisition Company (SPAC) deals. A SPAC is a company that is founded only for the purpose of raising funding through an initial public offering (IPO), with the sole goal of merging with an existing firm. They have no commercial operations.

The following mergers and acquisition investors facilitated the cryptocurrency deal closures, listed by deal count are, AU21, Genesis Block Ventures, Genblock Capital, Coinbase Ventures, and Moonwhale. 

The accounting firm’s crypto leader, Henri Arslanian said statement that crypto funding will not be on a foothold in the nearest future.

In a previous report by PwC, it was noted that amidst digital assets gaining a broader global acceptance, financial institutions are using crypto mergers and acquisitions to expand their way of doing business, from the traditional and usual way, to incorporating technology at the core of their business systems. As mentioned in the report, “companies across industries are attempting to incorporate and monetize non-fungible tokens (NFTs) as a component of their core businesses.”

Additionally, with crypto gaining momentum by the day in relation to M&A investments, the metaverse is also not left out.

It was captured that;

“companies developing AI, virtual reality (VR), augmented reality (AR) and connective hardware are attractive acquisition targets as interest in the metaverse grows, and we expect more M&A to quickly follow. Big tech, media conglomerates, online gaming companies, and other tech disruptors are all investing heavily in these technologies, as they vie to shape the development of the infrastructure and position themselves to benefit from the market opportunity in this emerging digital ecosystem.”

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

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