PwC Report Points to Banner Year for Crypto M&A and Fundraising Deals

The value of acquisitions in the first half of 2020 has already surpassed that of full-year 2019, according to a new report by PwC.

Oct 15, 2020 at 1:00 a.m. UTC
Updated Sep 14, 2021 at 10:09 a.m. UTC

COVID-19 has not slowed crypto M&A. To wit, the value of industry acquisitions in the first half of 2020 has already surpassed that of full-year 2019, according to a report released Thursday by PricewaterhouseCoopers (PwC). 

Around $597 million was spent in 60 deals in the first half of 2020, compared to $481 million spent in all of 2019 for 125 deals, according to data that PwC aggregated from M&A data firms MergerMarket, Capital IQ, Crunchbase and Pitchbook. 

That said, the acquisition of CoinMarketCap by Binance for a reported $400 million was one of the largest buys ever recorded in the industry. 

This year is on track to rival 2018’s $1.9 billion total spent on acquisitions in the crypto space. The average size of a deal in 2019 was $19.2 million compared to $45.9 million in 2020. 

The acquisitions for the first half of this year were driven by an increase in transactions involving crypto exchanges and trading infrastructure, and native crypto companies continue to be the most active purchasers in the space. 

Funding rounds

The average amount of fundraising deals has also increased from $4.8 million in 2019 to $6.4 million in the first half of 2020, with a heavy emphasis on trading firms. 

Most notably, crypto derivatives exchange Bakkt raked in a $300 million Series B in March. 

Seed rounds still heavily dominate fundraising deals in the industry, making up 57% of 2019’s deals and half of H1 2020’s deals.

Read the full report:

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
China Can’t Seem to Stop Bitcoin Mining

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

Reported hashrate fell to zero for two months in China last year, but it has since returned rather abruptly.

CoinDesk - Unknown
2
CoinDesk - Unknown
Could Local Digital Currencies Improve Communities?

That's the argument of the president of the RadicalxChange Foundation.

That's the argument of the president of the RadicalxChange Foundation.

CoinDesk - Unknown
3
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
4
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown