PwC: "in 2021 year, the number of acquisitions of cryptocurrency firms by technology companies will increase " – Bits Media

According to PwC analysts, in 2021 year more tech companies will be interested in buying cryptocurrency firms, and the number of mergers and acquisitions in the industry will increase.

According to a new PwC report, despite a difficult start last year, amount of deals to attract finance to the development of cryptocurrency companies grew on 33% Compared to 2019 year. Researchers think, what in 2021 more and more technological companies will begin to purchase cryptocurrency firms, providing "auxiliary" services.

When the Pandemia of Coronavirus began to seriously affect the economy, Venture financing of cryptocurrency projects fell sharply on 50%. However, it began to grow again and has reached more $3 billion largely thanks to institutional investors. According to PWC, The average amount of financing of cryptocurrency companies increased by 68% Compared to 2019 year.

The total cost of merging and acquisition in the cryptocurrency industry has more than doubled last year compared to 2019 year, Having reached $1.1 billion. The largest of such operations was the purchase of the analytical site CoinmarketCAP Binance cryptocurrency exchange for $400 million.

As PWC analysts note, Most of the transactions occur in North and South America. At the same time in 2019 the year Asia and Europe were the leading in the number of mergers and acquisitions in the cryptocurrency industry. Average transaction in 2019 The year compiled $19.2 million, and in 2020 year - $52.7 million. PWC expects, that this year the number of merger and acquisition transactions will still grow.

It means, that large players in the world of technology and finance, most likely, will strive to buy smaller cryptocurrency firms. for instance, Earlier this month, PayPal confirmed the purchase of an Israeli startup Curv. For a payment giant, this is the first acquisition of the company, operating in the field of digital assets.

“We expect, what in 2021 More institutional players will consider the possibility of entering the cryptocurrency industry through investment or acquisition of companies ", - says in the PWC report.

Analysts added, that "cryptocurrency industry continues its way to institutionalization". This is due to the interest of the media in the industry, and especially state cryptocurrencies, decentralized financing (DeFi) and unrecognized (NFT).