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US: the boom of crypto companies in 2020

US: the boom of crypto companies in 2020


Bloomberg published an interesting report by PwC on mergers and acquisitions involving crypto companies over the past two years. 

The most striking fact is the tripling of the value of M&A in the Americas in 2020 compared to 2019. 

In fact, 48 crypto mergers or acquisitions took place in the Americas in 2020, down from 60 the previous year, but with the overall values tripling from $251 million in 2019 to $785 million last year. 

Given that the crypto market in the Americas is literally dominated by the US, in light of this data it is possible to speak of a real boom, not in terms of the number of transactions, but in terms of their overall value. 

Indeed, according to the report, this activity is likely to continue to grow during 2021. 

It is worth noting that these figures do not refer to the cryptocurrency and token market, but to that of crypto companies, so they suffer much less from the famous volatility of cryptocurrency prices. 

Mergers between crypto companies outside the US

The EMEA (Europe, Middle East and Africa) market also saw an increase in M&A volumes of more than 100%, as they rose from $131 million to $303 million, with the number of deals also increasing from 31 to 41. 

On the other hand, the APAC (Asia-Pacific) market recorded a real collapse, as volumes dropped from $99 million to $24 million, and deals from $32 million to $29 million. 

In other words, it seems that the market for crypto companies is shifting from Asia to the US, perhaps due to the fact that the US has massively entered this sector quite late when compared to Asian countries such as Japan and South Korea. 

PwC global crypto leader, Henri Arslanian, said: 

“2021 is already on track to significantly surpass 2020 from every single metric. Institutional players, large investors and cash-rich crypto platforms will drive activity”.

PwC also predicts that the crypto sector will become increasingly institutionalized, partly due to fast-growing earnings.






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