According to a recent report published by The Block Research, a record number of mergers and acquisitions (M&A) of crypto, financial and tech companies totaling about $6.1 billion was recorded in 2021.
The researchers have said that more than 197 acquisitions have been made so far, which represents a 131% increase compared to last year, when “only” 85 deals were closed.
There has been a revival in the M&A activity simply because in this way cryptocurrency-related companies not only eliminate competitors, but also expand their own services.
Just as an example, US-based cryptocurrency exchange Coinbase purchased infrastructure solutions provider Bison Trails for an undisclosed amount in early 2021. In addition, crypto bank Galaxy Digital, owned by Mike Novogratz, in May announced it plans to buy financial services provider BitGo for about $1.2 billion. The deal is expected to close by the end of the year.