PwC Global Cryptocurrency M&A Report: 2021 Sees Nearly 5000% Growth in Scale, Trends for 2022

The global accounting firm PricewaterhouseCoopers (PwC) has released the 2021 Global Crypto M&A and Fundraising Report, which reveals a significant 4846% increase in global crypto M&A activity, with the Americas as the primary region for transactions; crypto fundraising has also grown by 143%.

2021 Mergers and Acquisitions (M&A) and Financing Trends

M&A scale grew significantly by 4846%:

• In 2020, there were a total of 118 M&A transactions with a total transaction volume of approximately $1.1 billion, and an average transaction size of around $52 million.
• In 2021, there were a total of 393 M&A transactions with a total transaction volume of approximately $55 billion, and an average transaction size of around $179.7 million.

Top M&A transactions in 2020:

Top M&A transactions in 2021:

Ranking of institutional equity investments in crypto companies in 2020 and 2021:

Trading Region Dominated by the Americas

In regions outside the Americas in 2020, EMEA (Europe, Middle East, Africa) and APAC (Asia-Pacific) accounted for 60% of M&A transactions. However, in 2021, the Americas accounted for 51% of M&A transactions, with a total transaction value of $24.5 billion, showing significant M&A activity in the American crypto enterprises.

Significant Increase in Crypto Enterprise Financing in 2021

Crypto enterprise financing saw a 143% increase in funding amount and a 645% increase in the number of financing transactions:

• In 2020, there were a total of 616 M&A transactions with a total financing volume of approximately $4.6 billion, and an average financing size of around $10.8 million.
• In 2021, there were a total of 1552 M&A transactions with a total financing volume of approximately $34.6 billion, and an average financing size of around $26.3 million.

Top financing transactions in 2020:

Top financing transactions in 2021:

2022 M&A and Financing Trends

PwC predicts that the scale and quantity of M&A and financing will continue to grow in 2022. This is due to the establishment of 49 funds focused on blockchain and cryptocurrencies in 2021, leading to more venture capital funds. With over 500 venture capital firms in this field globally, growth is expected to continue. PwC is also monitoring whether crypto companies will continue to seek listings through Special Purpose Acquisition Companies (SPACs) in 2022, or if it will be a passing trend.

Metaverse, NFTs, DeFi, and Web3.0 will continue to grow, but M&A activity will be less. PwC believes that these areas flourished in 2021, with significant adoption of NFTs, substantial investments in DeFi, and concepts like the metaverse and Web3.0. However, as these areas are still in their early stages, financing is expected to outweigh the number of M&A transactions.

Mature industries will drive investments. PwC anticipates that the crypto industry in 2022 will continue to consolidate and expand, with more mature crypto companies using M&A to expand into other geographical regions and products, which will also drive policy development in regulation and licensing.

PwC Actively Expanding Crypto Business

M&A advisory, financing strategies, legal support, and more are part of PwC's business. They have consistently released reports related to cryptocurrencies and blockchain to establish a professional image in the industry and provide relevant services.

In addition to PwC, another "Big Four" accounting firm, KPMG, also provides services for the blockchain industry. KPMG Canada even announced the purchase of Bitcoin and Ethereum as part of their corporate treasury, signaling an active entry into the industry.