M&A deals in the crypto and blockchain sector soared by 131% this year, The Block Research said in a report.
The number of mergers and acquisitions in the crypto and blockchain sectors more than doubled in 2021, and transaction volume boomed to more than $6 billion, according to a report from The Block Research.
Crypto asset manager Galaxy Digital, led by bitcoin bull Mike Novogratz, made the first billion-dollar deal in the sector with its May announcement that it would buy BitGo, a digital asset infrastructure provider start-up, for $1.2 billion.
The deal contributed to an overall 131% spike up in M&A deals in the sector this year to a record 197 from the prior high-water mark of 85 set a year ago, according to The Block Research's 2022 Digital Asset Outlook. The value of the transactions saw an even more dramatic surge, soaring 730% to $6.1 billion.
“2021 was a defining year for the blockchain and cryptocurrency sectors where it matured from a nascent industry,” the report said.
Coinbase racked up the most amount of deals in 2021, tallied at eight, including its purchase of infrastructure platform Bison Trails. Coinbase has become “the most aggressive participant” in crypto-sector M&A with a total of 27 agreements, said The Block Research.
The deal-making boom comes as companies work to strengthen their footing in the broader $2.3 trillion cryptocurrency market. The market's valuation briefly stretched beyond $3 trillion this year for the first time, supported by a wave of institutional and retail investment this year.
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