Home Market Crypto M&A activity reaches record high

Crypto M&A activity reaches record high

Cryptocurrency M&A activity has reached a record high as prices remain depressed, according to JMP Securities’ Satya Bajpai.

As the cryptocurrency market continues to struggle to break free from bear territory, opportunists are looking at the slump as their chance to catch a deal. Blockchain and crypto M&A deals have surged this year, climbing from 47 in October 2017 to 115 currently. And according to JMP, it could reach as high as 145 by the end of 2018.

M&A

Though JMP wasn’t able to pin an exact figure on the average transaction involved in these M&A deals, the securities firm noted that the majority of the deals were “relatively small,” with most carrying a price tag of less than $100 million.

Head of the blockchain and digital assets investment banking at JMP, Satya Bajpai, noted, “You’re seeing a mispricing of assets,” adding, “Even for great businesses, the value of the token remains correlated to bitcoin, which can create an ideal opportunity for strategic acquirers.”

Bajpai also explained the complexity of the space, from valuations to the sheer speed at which the industry is moving.

“As soon as a company becomes interesting, they get bought — the deal size may still remain small, but the number of deals will increase because that’s the most viable and fastest way to grow in this environment.”

Coinbase leads the M&A charge

While the number of deals continues to rise, Coinbase may be the most notable company taking advantage of the opportunity to grow its portfolio.

Following in the footsteps of its largest investor, Digital Currency Group, Coinbase has been on somewhat of a tear this year. Out of its 10 total acquisitions, 8 of them came this year, including the especially noteworthy buyout of Keystone Capital, positioning Coinbase as an officially regulated broker.

In addition to Keystone, Coinbase also swallowed up Earn.com and decentralized exchange, Paradox, harnessing both the technology behind these platforms and the personnel to propel forward in its endeavors.

 Crypto companies are going head to head with Big Banks

While Coinbase’s acquisition of Keystone Capital was especially noteworthy, other strategic acquisitions from the likes of Lightyear Corp. (the commercial arm of the Stellar Development Foundation), Circle and Binance show that the industry is beginning to get serious about the business side of things.

As the cryptocurrency and blockchain industry has grown, many are no longer looking to compete against one another, but against the already-established finance giants such as ICE, JPMorgan, and Goldman Sachs, and because of that, M&A activity will likely continue to soar.

The above is to be considered opinion and not investment advice in any way, as an unbiased media, no one interferes with the Editorial content of CryptoInsider.com, writers have freedom to choose their own direction, members of Crypto Insider do not participate in trades based on content.

Like what we wrote? Donate to us today so we may continue to write! 
BTC: 1HozPdTTJahPigLXwMShErhubZLobBhFPL
ETH: 0xDf4d2529D777a80717E85Ed2269830ad6265951B
LTC: LMT3LCbCSvActkVo4dgzbHjn1HPrCgKch2
BCH: 17sFsLgZq9jibtqi5Bo5SiUcCD4TG8RQwE

Michael Kern
Michael Kernhttps://www.linkedin.com/in/michael-kern-writer/
I am living in Mexico, new tech enthusiast, decentralization fan, cryptocurrency enthusiast, geopolitical junkie, digi-explorer, and music lover. I believe that we are on the cusp of a new frontier in how we will view the government, money and energy.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

CRYPTO INSIDER TV

video

Interview: Yoni Assia on eToroX and the cryptocurrency market

On April 16th 2019, eToro founder and CEO Yoni Assia has agreed to do an exclusive interview for Crypto Insider at the Paris Blockchain...