Trends in M&A for Crypto

Brief summary below of M&A Trends for the segment over the next few months.

Bear market scenarios are great opportunities for M&A and it will be no different for the crypto market. This consolidation factor is present in all companies and is a fundamental part of building a healthy and successful market.

1. Buy or build?

• Big crypto corps betting on M&A as a way to reduce the risk of “build” and gain time-to-market with the “buy”;

• More qualified access to geographies with different regulations and consumer behavior;

• Search for complementary products that require high implementation costs if built from scratch.

2. Outsiders as the new insiders

• Technology companies and large financial institutions entering the crypto market through M&A or CVC;

• Outsiders creating proprietary solutions resulted in several controversies, such as the case of Meta investing US$20b in the construction of its metaverse (which has not yet shown what it came for);

• Greater flow of investments from Web2 companies into Web3 companies;

• Going on purchases from large financial institutions seeking to speed up time-to-market through crypto solutions, especially in DeFi.

3. Market in consolidation

• Consolidation of players via M&A to join forces (and cash) to extend runway;

• Search for synergy and efficiency in processes, products and the organization;

• Greater financial sustainability to face a bear market scenario.