Crypto industry M&A activity surged 131% in 2021

Cryptocurrency deal-making clocked in record volumes after a frenzied year for merger and acquisitions, with approximately $6.1 billion in M&A volume driven by crypto-native, finance, and technology companies. 

As noted by The Block Research's 2022 Digital Asset Outlook report, M&A transactions hit a record high for the sector with more than 197 acquisitions so far this year. That growth represents a nearly 130% increase compared to last year, which clocked in 85 transactions.

The surge in dealmaking has been fueled by both crypto companies acquiring rivals that offer services that expand their bread and butter offerings. For instance, Coinbase — which is best known for its brokerage and exchange businesses — snapped up Bison Trails for an undisclosed amount at the beginning of the year to expand into blockchain infrastructure services. Plus, Galaxy announced it would acquire financial services provider BitGo in a $1 billion-plus transaction. That deal is expected to close next quarter. 

It's not just crypto companies either. 

Credit card company Mastercard announced its acquisition of crypto sleuthing company CipherTrace, while popular equities broker Robinhood announced its first crypto acquisition in December. 

"Non-crypto businesses are beginning to make strategic moves to position themselves, both offensively and defensively, as crypto and blockchain-based applications, commonly referred to as dApps, emerge," an email sent to clients by boutique M&A consultancy firm Architect Partners noted.