Europe and Asia lead in crypto-related M&A deals

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A new report from PwC indicates that the majority of fundraising and M&A (merger and acquisition) deals in the cryptocurrency industry are now happening in Asia and Europe, surpassing the previously dominant role of the Americas, Coindesk reports.

PwC released the study at Coindesk’s Invest Asia event. Its analysis of the crypto ecosystem found that 41 percent of global fundraising deals in Q2 2019 took place in Europe, and that Europe saw 34 percent of global fundraising deals in the same period last year. Similarly, cryptocurrency fundraisers in the Asian market have jumped significantly, accounting for 26 percent of the deals in Q2 2019. This means that the two regions account for 67% of the deals in this period.

Meanwhile, in the Americas, things are going downhill. While the region accounted for 51 percent of global deals in Q2 2018, the Americas captured just 28 percent in Q2 2019, which is a drop of almost 50%.

PwC also pointed out that globally, the total number of fundraising deals, as well as the amount of capital involved, have both declined by more than 50 percent since Q1 2018. Although this is somewhat mitigated by bitcoin’s recent price rise, which given an uptick to the value of global deals, which have grown to $250 million in Q2 2019 from $166 million in Q1.

Lucy Gazmararian, senior manager of PwC’s fintech and crypto team, said at Invest: Asia: “The price of bitcoin is the bellwether for the industry and for the sentiment of investors. As the price of bitcoin has recovered, we see the sentiment has become more positive and have seen more activities in fundraising and M&A activities.”

The USA has also declined in M&A activities and accounted for only 48% of them in Q1 2019, compared to over 80% in the first half of 2018.

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