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According to PwC, the digital asset market was gaining “broader popular acceptance” in 2021, as traditional banking corporations were aiming to integrate crypto into their core businesses through mergers and acquisitions.
PwC, one of the biggest accounting firms in the United States has released a study on global Mergers and acquisition deals (M&As) in the cryptocurrency industry this past year, with the report revealing the value of crypto M&As, saw an unprecedented increase of 4,846%.
The average deal size, according to the study released by PwC, went up from $52.7 million to $179.7 million, which was partly driven by special-purpose acquisition company (SPAC) deals.
The accounting firm also revealed that crypto fundraising deal volumes surged 645% in 2021, with top-five investors by deal count including, Coinbase Ventures, the investment arm of Coinbase, involved in early-stage cryptocurrency and blockchain startups, the Cayman Island-based venture capital firm, Genesis Block Ventures, Genblock Capital, blockchain investor AU21, and STO Financial Advisory firm, Moonwhale.
Henri Arslanian, PwC crypto leader, speaking after the report stated that crypto fundraising does not seem to be slowing down anytime soon, adding that some valuations have reached levels “that are often difficult to justify.”
PwC’s new report follows the firm’s January 24 release of a new study on worldwide Mergers and Acquisition trends in technology, media, and telecommunications. According to the report, 2021 was a record year for crypto mergers and acquisitions, with 600 total agreements, a figure which was more than double that of 2020.
According to PwC, the digital asset market was gaining “broader popular acceptance” in 2021, as traditional banking corporations were aiming to integrate crypto into their core businesses through mergers and acquisitions. Companies across several industries were also striving to integrate and monetize non-fungible tokens (NFTs) as a component of their core businesses, the firm stated.
“We expect a continued acceleration in crypto-related IPOs and acquisitions in 2022 across trading platforms, digital payment applications, and related products,” PwC wrote.
Coinbase Ventures had a record year in 2021, with just under 150 deals, and averaged a new deal every 2.5 days. Over 90% of the capital that the firm has deployed since its start was deployed in 2021, which according to the firm, indicated an accelerated pace of activity in its fourth year of operation.
According to their official website, the firm sees cryptocurrency and Web3 as a “rising tide that lifts all boats.” The firm added that, together with its parent company, Coinbase, they aim to make investments that are crucial to the space’s overall growth.