PwC Reports show crypto merger deals surged to 5000% this year and it shows how big the industry boom was in 2021 so let’s read further in today’s latest cryptocurrency news.
Crypto mergers and acquisitions soared from $1.1 billion in 2020 to $55 billion which represents a huge surge of 4,846% as per the PWC reports. The average size of the M&A increased by three times from $52.6 million to $179.7 million and the reports show that a few mega-billion SPAC were behind this jump. 2021 saw the activity shift back to the Americas and the region increased the shares of the total number of M&A deals from 41% to 51%. in terms of the total value, the Middle East and Africa were ahead with $25.5, and the Asia-Pacific region trails far behind with $5 billion in merger deals.
PwC is a multinational corporation that provides assurance and tax services whcih also reproted on crypto fundraising efforts. The total value of such deals increased 645% from $4.5 billion to $26.3 billion with an average was up by 143%. it also noted that the number of venture companies that finance crypto and blockchain projects increased last year with 49 new funds and the total number of such VCs is under 500.
The report expects the momentum to continue building on the rise in the past year and the bigger number of VC funds will fuel growth in crypto deals. The key question is that crypto companies will continue to tap into SPAC’s as a funding opportunity as they also exploded in 2021 as they offer a way for companies to avoid some of the regulatory scrutinies when going public. The report also saw a continued growth trend in NFTs, DEFI and Web3, and the Metaverse. These segments of the blockchain space saw huge growth in 2021 and PWC expects this trend to continue but with fundraising deals as the tech sector is still in its emerging phase.
The rest of the crypto space will mature further in 2022 with more institutional actors entering the scene which will go hand in hand with more consolidation in the industry as the report concludes. Just last week, the documents by KPMG revealed that investmetns in the crypto space soared by 450%.
A PwC spokesperson explained further in an interview with Cointelegraph, saying that no acquisition took place and a lot of teams from the company have joined the firm. According to a press release that was published by the company, PwC Swiss branch hopes that with the team of ChainSecurity, they will become ‘’the world’s leader in smart contract auditing.’’
