Crypto industry mergers and acquisitions observations: more than 350 transactions in the past 7 years, amounting to more than 4 billion U.S. dollars

According to Bitcoinist's report on December 3, TokenData analyzed the M & A activity in the crypto industry and found that more than 350 transactions have occurred in the past seven years, with a value exceeding USD 4 billion.


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To date, it has developed for nearly 11 years, but has not yet fully matured. In fact, this will most likely take years or even decades. The crypto industry is still in its infancy, but important changes have already begun.


According to a recent report published by TokenData, M & A activity around cryptocurrency companies has increased significantly. TokenData reached a series of conclusions. From 2013 to the end of 2019, there were about 350 acquisitions of cryptocurrency and blockchain companies. Most of these transactions occurred in 2018 and this year, with 162 and 90-100 transactions, respectively, compared to only 4 in 2013.

In addition, TokenData believes that M & A transactions are as unstable as cryptocurrency prices and are positively related to the latter. Overall, the value of M & A transactions between 2013 and the end of 2019 was approximately $ 4 billion. Of this, most of the $ 2.8 billion occurred in 2018, and the transaction value in 2019 was much lower, at $ 700 million.

As TokenData points out, these numbers look pretty high, but the size of mergers and acquisitions is still dwarfed compared to the $ 200 billion in the total crypto market.

Acquisitions dominated by exchanges

Although the volume of M & A transactions in 2019 seems to have dropped significantly, TokenData pointed out that the reason may be that the way of M & A has changed, such as the merger of Facebook's Libra project or other crypto exchanges such as Coinbase. enterprise.

In fact, TokenData shows that the exchange is one of the most active acquirers. This is not surprising, as the exchange received huge sums of money to launch acquisitions. As of now, Coinbase has participated in more than 16 M & A transactions.

Of course, exchanges are not the only companies with the ability and willingness to buy crypto startups. Acquisitions of non-cryptocurrency companies have also increased significantly, especially those that are optimistic about the prospects of the crypto industry. These companies are trying to get a slice of the industry through acquisitions.

Facebook is the best example. It acquired two crypto startups Servicefriend and Chainspace to help the Libra project.

In fact, strategic mergers and acquisitions go far beyond that. As we all know, exchanges acquire startups just to get certain products or rights. TokenData states that in 2018 and 2019, the sole purpose of at least 15 transactions was to obtain regulatory approval. Companies that acquired crypto startups have not tried to hide this either, they say that regulation is one of the most important factors in their actions.

Other reasons include access to outstanding talent and promising new technologies. This situation is particularly prevalent in 2018 and 2019.

However, one obvious flaw is that these mergers and acquisitions have not yet been decentralized. Although many have speculated what decentralized M & A looks like, the answer can only be left to the future.