Crypto Merger and Acquisition Activity Totals $4 Billion Since 2013

Crypto Merger and Acquisition Activity Totals $4 Billion Since 2013
фото показано с : bitcoinist.com

2019-12-3 14:30

TokenData decided to analyze merger and acquisition (M&A) activity in the crypto industry, and it discovered over 350 deals worth over $4 billion in the last seven years.

The cryptocurrency industry has been around for nearly 11 years now, but that doesn’t mean that it has fully developed as of yet. In fact, it will likely be years, even decades before that happens. For now, this industry is still in its infancy, but even so — important developments are already underway.

According to a recent report published by TokenData, there has been a significant rise in M&A (Mergers & Acquisitions) surrounding cryptocurrency-based firms. However, in the last decade, there has not been any official report regarding this type of activity, excluding news reports and maybe some high-level summaries. This is why TokenData decided to do its own analysis and report some curious findings.

TokenData report

After long and thorough research, the company came to a series of conclusions, starting with the fact that there were around 350 acquisitions regarding crypto and blockchain firms between 2013 and late 2019. The majority of them happened in 2018, with 162 deals in total, while there were only 4 deals in 2013.

2/ Deal Activity

M&A activity peaked in 2018 with more than 160 deals, and we estimate 90-100 deals for 2019. Digging into deal types, stakeholders and dynamics will paint a better picture of what's really going on. pic.twitter.com/566DOHKP62

— TokenData (@TokenData) December 2, 2019

This year, the activity has once again dropped off, although it still includes between 90-100 deals, which makes it the second busiest year from 2013 until now.

TokenData also believes that the activity regarding M&A is as volatile as crypto prices, and it actually positively correlated with them. In total, the deal value of all activity between 2013 and late 2019 is estimated at around $4 billion, most of which ($2.8 billion) was recorded in 2018. The total for 2019 is significantly lower, sitting at $700 million.

5/ Deal Value

We estimate total deal value at $4 Billion since 2013, with $2.8B in 2018 and $700M in 2019. This might sound impressive, but it's small compared to the total network valuation of crypto networks (200B) and M&A in other tech sectors. It's still early… pic.twitter.com/5pSIWoiTh3

— TokenData (@TokenData) December 2, 2019

Clearly, these seem like significantly high numbers, although, as TokenData points out, the value of the crypto markets exceeds $200 billion, which dwarfs the volume of M&A.

Exchanges did most of the acquiring

While the volume seems significantly lower in 2019, TokenData points out that the reason might be that the different deal types have emerged, especially when it comes to Facebook’s activity regarding its Libra project, or consolidation plays by Coinbase and other crypto exchanges.

In fact, TokenData notes that exchanges are among the most active acquirers. This is hardly surprising, as trading continues to be one of the most popular activities in the crypto industry. That way, exchanges receive huge amounts of funds, which allows them to engage in acquisitions. Coinbase itself had over 16 deals up to this point.

7/ The M&A "Barbarians"

Trading is crypto's first killer-app providing big exchanges with cash and networks to engage in acquisitions. Unsurprisingly, Coinbase (16 deals ) leads the pack and engages in all types of deals (industry consolidation, regulatory plays, talent).

— TokenData (@TokenData) December 2, 2019

Of course, exchanges are not the only ones who have the means and the will to purchase crypto startups. A significant increase in similar activities was noticed among non-crypto companies, as well, especially by those that have high hopes for the future of the crypto sector. These firms did some acquiring of their own in order to increase their presence in the industry.

Facebook is the best example here, as the firm acquired two crypto startups — Servicefriend and Chainspace — both of which will contribute to Libra in some way.

Naturally, strategic M&A goes far beyond that, and exchanges have been known to acquire startups only to get access to certain products or jurisdictions. TokenData noted at least 15 deals in 2018 and 2019 that were made for the sole purpose of gaining regulatory licenses. The companies that acquired crypto startups do not try to hide this — they mentioned regulation as one of the most important aspects of their moves.

There were other reasons, as well, particularly when a company discovers a startup with exceptional talents or promising new technologies. These so-called ‘Tuck-Ins’ were particularly high in 2018 and 2019, with the activity in 2019 being only somewhat lower than last year.

One clear lack is noticeable when it comes to Decentralized M&A — there weren’t any in the last seven years. In fact, there were none of those, at all. Although many have been speculated regarding how those might look like, and for now — they remain the thing of the future.

What do you think about M&A in the crypto industry? Do you expect them to surge once more in 2020? Let us know in the comments below?

Image via Shutterstock,  Twitter @TokenData

The post Crypto Merger and Acquisition Activity Totals $4 Billion Since 2013 appeared first on Bitcoinist.com.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0413084 (-100%)

crypto years industry billion acquisition merger activity

crypto years → Результатов: 126


Trump Hates Bitcoin but Nations May Hold Crypto Reserves in 10 Years

Balaji Srinivasan, a former partner at a16z and former CTO at Coinbase, has said that in the future, every nation state may have to hold crypto. Srinivasan, who now operates as an angel investor, said: “Ten years after the launch of Bitcoin, the President of the United States and the Chair of the Federal Reserve […] The post Trump Hates Bitcoin but Nations May Hold Crypto Reserves in 10 Years appeared first on CCN Markets

2019-7-13 14:36


CFTC Is Four Years Behind on Crypto Regulation, Chairman Admits

The US Commodity Futures Trading Commission is at least four years behind its peers on crypto regulation, its chairman admitted on July 25. Speaking to the House Committee on Agriculture, Christopher Giancarlo stated that the current regulatory framework restricts it from taking a proactive role in the crypto industry and instead relegates it to dealing […]

2018-7-29 23:00


Фото:

Expert Claims That Bitcoin Will Rise 6000% In 6 Years, Seriously

As Bitcoin starts to retreat and as the markets start to balance, we may all start to be feeling a little less optimistic about a potential looming bull run. We do know that this is mostly likely down to the SEC decision to reject the Winklevoss application for a Bitcoin ETF but regardless of what’s caused it, it’s happening and unfortunately, there’s not a lot we can do about it at present.

2018-7-27 16:00


Фото:

This Expert Believes Bitcoin Will Reach $250,000 In Just Four Years Time

With the current momentum of Bitcoin clear, Bitcoin hitting $250,000. 00 by 2022 isn’t a totally unrealistic prospect. Although in order to reach this point, we do need to see some very significant gains and of course, Bitcoin needs to locate some stability at a number of other benchmarks too, considering that at the time of writing, Bitcoin is valued at just $8,262.

2018-7-26 15:30


BitFunder Owner Pleads Guilty to Securities Fraud, Faces 20 Years’ Imprisonment

The owner and operator of two defunct crypto platforms has pleaded guilty to charges of securities fraud and obstruction of justice. Jon E. Montroll was arrested in February after it emerged that he had used his platforms to steal from investors, operated an unregistered securities exchange, and lied about having knowledge of a hack on […]

2018-7-26 23:00


It Isn’t Too Late, You Can Still Invest In Cryptos

Despite many investors hopping on the crypto wagon every day, others are put off with where the market has reached now. The crypto market has grown monstrously for some years now and there is this thought that investors who embraced bitcoin and other cryptos whiles they were nothing years ago are the crypto millionaires we […] The post It Isn’t Too Late, You Can Still Invest In Cryptos appeared first on ZyCrypto.

2018-7-22 19:03


Фото:

Governance, Part 2: Plutocracy Is Still Bad

Coin holder voting, both for governance of technical features, and for more extensive use cases like deciding who runs validator nodes and who receives money from development bounty funds, is unfortunately continuing to be popular, and so it seems worthwhile for me to write another post explaining why I (and Vlad Zamfir and others) do not consider it wise for Ethereum (or really, any base-layer blockchain) to start adopting these kinds of mechanisms in a tightly coupled form in any significant way.

2018-7-21 23:03


How The Most Valuable Crypto Companies Could Become Blockchain-Based Banks

Giant Cryptocurrency Firms Take A Leap, Possibly Establishing Banks? The notion of cryptocurrencies first stemmed in 2013 through the first ever digital currency, Bitcoin. While it took some time to get used to hearing “Bitcoin”, which to this day is somewhat problematic, between the years 2017 and 2018, more consumers have become cryptocurrency investors. With […]

2018-7-19 14:47


Фото:

Marc Lasry Says Bitcoin Could Increase 433% In The Next Year

Earlier today (18th July), Marc Lasry spoke to CNBC on the morning news show ‘Squawk Box’ regarding how he can see the Bitcoin price rising to $40,000 or more within the next few years. The CEO and billionaire co-founder or hedge fund Avenue Capital Group, not to mention co-owner of the Milwaukee Bucks in the NBA, spoke to CNBC saying that he can envision the Bitcoin price reaching at $40,000 or more as the cryptocurrency gets a wider adoption which makes it easier to trade.

2018-7-19 12:00


Фото:

Bitcoin Payments Processor BitPay Granted BitLicense

After being criticized by the bitcoin community for its overly draconian nature, it appears the New York authorities are now ready for serious business.  U. S. -based bitcoin payments processor BitPay has been granted the BitLicense, making it the eighth cryptocurrency related business to gain the New York Department of Financial Services (NYDFS) approval in three years.

2018-7-18 14:00