Trusted

Are Crypto Firms Selling Themselves Due to Lack of Venture Capital Interest?

1 min
Updated by Geraint Price
Join our Trading Community on Telegram

In Brief

  • Crypto mergers and acquisitions hit an all-time high in Q1 2023.
  • With 54 deals, the number exceeded the previous record of 53 deals from Q4 2021.
  • Private crypto financing decreased from $12 billion in Q1 2022 to $3 billion in the previous quarter
  • promo

Architect Partners’ reports revealed that mergers and acquisitions (M&A) hit an all-time high in Q1 2023. Are crypto firms looking for an exit?

According to a Bloomberg article, there were 54 transactions related to crypto M&A deals in the first quarter of 2023. The article cites data from Architect Partners, an M&A advisory firm.

The crypto M&A exceeded the previous record of 53 deals from Q4 2021 when Bitcoin hit an all-time high of $69,000.

Crypto M&A hits all time high
Source: Bloomberg

Crypto Firms Resorting to M&A as an Exit?

Michael Ashe, the head of investment banking at Galaxy Digital, said, “Companies that would have been able to raise capital in a bull market are finding it difficult to do so now and are turning to M&A as an exit.”

The statistic that approximately 65% of the mergers and acquisitions in the last quarter were initiated by one crypto company acquiring another, mentioned in the Architect’s report, could potentially strengthen Ashe’s comment.

The report also revealed that private crypto financing decreased from $12 billion in Q1 2022 to $3 billion in the previous quarter.
Nonetheless, with Bitcoin’s price surging by 80% in 2023, there has been a corresponding uptick in the number of crypto venture capitalist deals.

BeInCrypto previously reported that the number of funding deals closed rose to 439 in Q1 2023 compared to 366 in Q4 2022.

Got something to say about crypto M&A or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | November 2024
Coinrule Coinrule Explore
Coinbase Coinbase Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024
Coinrule Coinrule Explore
Coinbase Coinbase Explore
Uphold Uphold Explore
3Commas 3Commas Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | November 2024

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Harsh.png
Harsh Notariya
Harsh Notariya is an Editorial Standards Lead at BeInCrypto, who also writes about various topics, including decentralized physical infrastructure networks (DePIN), tokenization, crypto airdrops, decentralized finance (DeFi), meme coins, and altcoins. Before joining BeInCrypto, he was a community consultant at Totality Corp, specializing in the metaverse and non-fungible tokens (NFTs). Additionally, Harsh was a blockchain content writer and researcher at Financial Funda, where he created...
READ FULL BIO
Sponsored
Sponsored