Crypto industry M&A activity surged 131% in 2021

Startups • December 20, 2021, 10:00AM EST

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.

Read the full report here.

About Author

Frank Chaparro is the Editor At Large at The Block. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. He runs his own podcast The Scoop and writes a biweekly eponymous newsletter. He leads special projects, including The Block's flagship podcast, The Scoop. Prior to The Block, he held roles at Business Insider, NPR, and Nasdaq. For inquiries or tips, email [email protected].