Guest post by Kemp Moyer from BPM LLP
Kemp is the senior manager, advisory of BPM LLP.
We studied some of cryptocurrency’s largest M&A transactions and discovered a few interesting trends. Here is what those in the crypto world may expect to see as a result of strategic M&A moves in the cryptocurrency space going forward.
Since the late-2017 price peak, the markets for the top cryptocurrency alternatives have been notably volatile, which has led to certain challenges in the crypto and—closely related but fundamentally different—blockchain technology spaces. However, as the old adage goes, market challenges also present opportunity, and certain players in the space have been acting on that opportunity to advance their offerings and accelerate growth through strategic acquisitions.
Along with other notable transactions, this acquisition prompted BPM professionals to analyze the data of 10 notable Mergers and Acquisitions (“M&A”) transactions in the crypto space that closed between April 2018 and June 2019.
Crypto companies will continue to target synergistic technology
Of the 10 M&A transactions BPM analyzed within the crypto and blockchain space, at least five enabled the acquirer to access new technologies to inorganically expand or improve an element of their platform.
In June 2018, Tron, a leading proponent of internet decentralization, acquired BitTorrent for $126 million in cash to utilize BitTorrent’s decentralized peer-to-peer file sharing service. Over time, the adoption of decentralized platforms is anticipated to help improve and ensure data privacy among users, seen by many as a necessary component for the crypto and blockchain industry moving forward.
A month later, Binance Holdings,