Architect Partners reports that mergers and acquisitions (M&A) hit an all-time high in the first quarter of 2023. Are crypto firms looking for a way out?
According to Bloomberg conditionThere were 54 transactions related to cryptocurrency M&A deals in the first quarter of 2023. The article cites data from Architect Partners, an M&A advisory firm.
Cryptocurrency M&A surpassed the previous record of 53 deals from the fourth quarter of 2021 when bitcoin reached an all-time high of $69,000.
Are Cryptocurrency Companies Resorting to Mergers and Acquisitions as an Exit?
“Companies that would have been able to raise capital in a bull market are now finding it difficult to do so and turning to mergers and acquisitions as an exit,” said Michael Ash, head of investment banking at Galaxy Digital.
The statistic that nearly 65% of mergers and acquisitions last quarter were by one crypto company acquiring another, cited in the Architect’s report, likely reinforces Ash’s comment.
The report also revealed that private crypto financing fell from $12 billion in the first quarter of 2022 to $3 billion in the previous quarter.
However, with the price of bitcoin up 80% in 2023, there has been a similar rise in the number of crypto venture capital deals.
BeInCrypto previously reported that the number of financing deals closed rose to 439 in the first quarter of 2023 compared to 366 in the fourth quarter of 2022.
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