In Asia, Europe and Africa, more companies are merging and buying than in America.
Companies are looking for opportunities in industries like mining and blockchain development.
In 2019, the amount of funds for the acquisition, merger and financing of specialized blockchain companies decreased significantly. As well as the quantity and the value of the rounds of collecting, according to the company PwC.
As indicated by that Second global report on cryptocurrencies and fundraisingIn 2019, 114 purchase or merger contracts of these companies were valued at $ 451 million. Before that (2018), however, 189 agreements had been concluded for a total of USD 1.9 billion. What it shows today a decrease in the number of agreements by 40% and the value of these agreements by 76%.
Regarding collecting rounds, there were 662 rounds worth $ 3.8 billion in 2018, an 18% decrease. A total of 540 rounds of donations were registered worldwide in 2019.
In addition, funding for companies specializing in cryptocurrencies and blockchain focuses on the Asia Pacific (APAC), Europe, Middle East, and Africa (EMAC) regions, rather than the American continent. This emerges from a trend that the company has in these new statistics.
Geographically the regions EMAC and APAC total 51% of all business collections and acquisitions in 2019. During the same period, America contributed 48% of these trade movements related to the specific agreements, 2019 was the year the American continent reversed this trend for the first time. when it fell to less than 50%.
Previously, the Americas had made 55% of investments in this sector in 2018, which is a significant decrease compared to other regions. This trend will continue in 2020. The study shows that in 2018, 71% of fundraising was collected by emerging companies, while last year they received 59% of total funding and others with more experience increased their funding.
Bithumb and Ripple are among the most financed companies
The three biggest fundraisers in 2019 in the cryptocurrency and blockchain space are Robinhood ($ 300 million), Ripple ($ 200 million) and Bithumb ($ 200 million). Other companies like Thundercore (USD 50 million) and Blockchain Capital (USD 200 million) follow in the list. Five out of ten funding agreements in the U.S. are designed to develop purses or digital payment platforms.
The three most important mergers or acquisitions in this sector in 2019 are on Crypto Facilities (acquired from Kraken for $ 100 million), Coins.ph (Go-Jek, $ 70 million) and the Argentine stock exchange Xapo (from Coinbase with 55 bought) attributed millions). Immediately in fourth place is Coingeek, which Square Mining acquired for USD 45 million.
Another trend that the report shows is that in 2018, the bulk of the funding was used for projects related to the development of the blockchain infrastructure. This year, investment and fundraising in this sector tripled compared to the previous year, as we reported in due course.
Although regulation is a point of interest, companies could do so driven to invest in the mining sectorto diversify its portfolio and interests. They may also be interested in investing in media, research agencies and industry advice.
They also explain that the crisis caused by the effects of the corona virus worldwide has similar ramifications for blockchain-focused companies, which could also affect fundraising and mergers and acquisitions of companies in the region. However This crisis is expected to lead to the acquisition of smaller companies by the main players in the ecosystem..
Finally, PwC claims to be able to help companies that invest in the crypto space in a variety of ways. Assistance with settlement, strategic planning and compliance with cryptocurrency tax laws, the latter a service that the company had announced at that time.