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Cryptocurrency and Blockchain M&A has Only Just Begun to Boom

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Cryptocurrency mergers and acquisitions (M&A) are reaching record highs.

This is the result of dealmakers seeing opportunity in the latest price slump, says JMP Securities.  In fact, just over the last year, M&A is 200% at an annualized rate.

115 Cryptocurrency Deals already Announced in 2018

This week saw 115 inked deals involving cryptocurrency or blockchain.  That number will probably reach 145 in this year alone as Bitcoin rockets to $20,000.  Therefore, it shows a substantial increase from the 47 total deals from the entire 2017.

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

Additionally, the firm notes, “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.” Leading the Way

Coinbase is making quite a few deals of its own.

Out of the last 10 acquisitions, eight were set up in 2018, including its buyout of Keystone Capital.  Additionally, it bought and the decentralized exchange, Paradox.

Lightyear Corporation acquired Chain, Inc. for an estimated $500 million.

The digital asset industry is no stranger to M&A

“To date, traditional enterprise has only dipped their toes in the water on digital assets and much of this has centered around experimentation. However, traditional enterprise is starting to accelerate their efforts,” notes the NASDAQ.

“Announcements like these have sent a clear signal to digital asset companies that traditional enterprise is paying attention, and is not only considering, but accelerating their entry into the space. It’s a promising sign for mainstream integration, as the decisions of large corporations will no doubt serve as a catalyst for greater mainstream blockchain adoption.”

In short, buckle up. The ride has only just begun for cryptocurrency and blockchain M&A.



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