PwC Report: Crypto Merger Deals Skyrocketed 5,000% in 2021

According to PwC, crypto mergers and acquisitions (M&As) rose from $1.1 billion to $55 billion in 2020, which represents a huge surge of 4,846%.

The average M&A transaction size increased threefold from $52.7 million in 2005 to $179.7 millions in 2007. This significant jump was attributed to a few SPACs worth billions.

Deals in Crypto M&A Source: PwC

In 2021, the Americas saw the most activity. This region saw its share of M&A deals rise from 41% to 51%.

With $25.5 billion in total value, Europe and the Middle East are slightly ahead of Africa with $25.5. With just $5 billion in merger transactions, Asia-Pacific is far behind.

PwC, a multinational company that provides assurance, consulting and tax services, reported on crypto fundraising efforts. The value of these deals increased by 645% from $4.5 billion up to $26,3 trillion. The average amount also increased by 143%.

Crypto Fundraising Deals. Source: PwC

It was also noted that there were 49 new venture capital funds that funded crypto and blockchain projects in 2021. This brings the total number of such VCs to just below 500.

Trends for 2022

According to the report, the industry will continue to experience momentum thanks to the substantial rise over the past year. The increase in VC funds will also likely drive growth in crypto deals.

The report asks whether crypto companies will continue using SPAC’s to fund their projects. Special Purpose Acquisition Companies (SPACs), which allow companies to bypass some regulatory scrutiny when they go public, have seen a surge in 2021.

The report also highlights the continuing growth trend in NFTs and DeFi (Decentralized financing), Web 3 and the Metaverse. These areas of blockchain saw remarkable growth in 2021. PwC anticipates that this trend will continue, but more with fundraising deals than M&A as the technology is still in its early stages.

In 2022, the rest of crypto space will mature with the addition of more institutional players. The paper concludes that this will be accompanied by more consolidation and expansion in the industry.

The Crypto Industry Boom

Financial industry reports reveal that the crypto industry experienced a tremendous increase in growth last year.

KPMG, the accounting firm, revealed last week that digital asset investments have risen by 450%. LinkedIn previously reported that the demand for blockchain and crypto jobs increased by 395% in the same year.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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