Cryptocurrency M&A will grow nearly 5,000% in 2021, reports PwC | Bitcoin Magazine

How big is the crypto industry boom in 2021? last one report PwC’s report shows that cryptocurrency mergers and acquisitions (M&A) activity has grown from $1.1 billion in 2020 to $55 billion, a 4,846% increase.

The average M&A size has tripled from $52.7 million to $179.7 million. The report notes that a few Special Purpose Acquisitions (SPACs) have been driving this significant growth.

The top 5 investors by number of transactions are AU21, Genesis Block Ventures, Genblock Capital, Coinbase Ventures and Moonwhale.

Cryptocurrency mergers and acquisitions | Source: PwC

In addition, activities will shift back to America in 2021 and increase the share of all M&A deals from 41% to 51%.

In terms of total value, Europe, the Middle East and Africa has a slight lead at $25.5 billion. Asia-Pacific lags behind with $5 billion from mergers.

PwC, a multinational company that provides insurance, consulting and tax services, also reported on crypto fundraising efforts. The total value of those deals increased 645% from $4.5 billion to $26.3 billion, with the average amount up 143%.

Fundraising transaction in cryptocurrency | Source: PwC

The report also notes that the number of venture capital firms (VCs) funding crypto and blockchain projects has increased in 2021 with 49 new funds. The total number of such VCs is now approaching the 500 mark.

Trends 2022

The report expects the momentum in the industry to continue based on the significant upward momentum over the past year. Additionally, a larger number of VC funds will likely spur growth in crypto exchanges.

A key question is whether crypto companies will continue to use SPAC as a funding option. SPACs have surged in popularity in 2021, offering companies a way to avoid some regulatory scrutiny when going public.

The report also shows continued growth trends in NFT, DeFi, Web 3 and Metaverse. These segments of the blockchain space have seen tremendous growth in 2021. PwC expects this trend to continue, but likely more so in fundraising deals than M&A given the technology is still in its infancy.

The rest of the crypto space will continue to grow through 2022, with more institutions set to participate. This will come with the consolidation and expansion of the industry, the paper concludes.

The boom of the cryptocurrency industry

The cryptocurrency industry has seen tremendous growth over the past year.

Just last week, a document from accounting giant KPMG revealed that investments in digital assets have skyrocketed by 450%. A previous report by LinkedIn showed that demand for crypto and blockchain jobs increased by 395% in the same year.

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