According to PricewaterhouseCoopers report (PwC), the cryptocurrency merger and acquisitions (M&A) have seen a massive jump of 5,000% in 2021. It also shows that the complete valuation of M&A acquisitions has reached US$55 billion. Recently, PwC had published its fifth “Global Cryptocurrency (Crypto) Mergers and Acquisitions (M&A) and Fundraising Report”.
On average, the size saw a threefold increase in M&A from $52.7 million to $179.7 million. Moreover, In the United States showed its contribution from 41% to 51% in M&A acquisitions. As per the reports, the top 10 values of mergers and acquisitions were valued in millions in 2020 while it increased drastically 3 times in 2021. The most valuable part of this jump is the special-purpose acquisition companies also known as “SPAC”.
More capital to be poured in 2022
PwC calls AU21, Genesis Block Ventures, Genblock Capital, Coinbase Ventures, and Moonwhale as top 5 investors to close most valued deals. Such kinds of investors alone contributed to cryptocurrency fundraising for 645% in the year 2021. This sighted the eightfold increase in cryptocurrency fundraising tracking a record of $34 billion.
Moreover, the report also focuses on a piece of contribution by Europe and EMEA (Europe, Middle East, Africa) regions. The total value accounted for only 33% of the deals made in 2021. While the Asian-pacific region managed to bag the remaining 13% i.e. $5 billion value in fundraising deals. The crypto and NFT centered companies like FTX Trading, Sorare, and Celsius lend a helping hand in closing the deals of $16 million.
This third running year can likely hit the market hard seeing the amount of investment coming into the crypto market. Thanks to the launch of major digital assets land places like NFT, virtual land acquisitions, marketplaces, exchange communities are making ways to bring a capital raise in the market. Also, there is an increased awareness of the crypto concept attracting more firms and distinguished individuals for investment purposes.
Lately, Chainalysis also drew its reports on the booming market of NFT. It saw an explosive surge in the NFT value market of $44million in the year 2021. If everything is put together in the digital asset industry, it has reached a global market cap of $2 trillion.