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Key facts:
In Asia, Europe and Africa merge, and buy more companies in the american continent.Companies are seeking opportunities in industries such as mining and development blockchain.During 2019, the amount of funds for the acquisition, merger and financing of companies specializing in blockchain, has decreased substantially. As well as the amount and value of the rounds of collecting the same, according to the company PwC.As indicated by the Second Global Report on Cryptocurrencies, and Fundraising during the year 2019 were concluded 114 agreements of purchase or merger of these companies with a value of USD 451 million; but previously (2018) had been accounted for, 189 agreements for a total of USD 1.9 billion. What today shows a decline of 40% in the number of agreements and 76% in terms of the value of these.In terms of the rounds of fundraising, for 2018 there were 662 rounds with a value of USD 3.8 billion, representing a decline of 18%. While in 2019 was recorded at the global level a total of 540 rounds of fundraising.In addition, the financing of companies specializing in cryptocurrencies and blockchain is concentrating in the regions of Asia-Pacific (APAC), Europe, Middle East and Africa (EMAC), more than in the american continent, according to a trend identified by the firm in these new statistics.Geographically, the regions EMAC and APAC account for 51% of all collections and acquisitions business of 2019. While in the same period, the Americas contributed 48% of these commercial movements around the agreements sealed, but 2019 was the year that the american continent saw reverse this trend for the first time; when it is reduced to less than 50%.Previously, in 2018, the american continent met the 55% of the investments in the sector, which shows a dramatic decline with respect to other regions; a tendency that ensure it will continue in 2020. The study points out that, during 2018, 71% of the funds collected was collected by emerging companies, while last year they received 59% of the total funds and others with more track record increased their funding.
Bithumb and Ripple among the companies that received greater funding
The three major fundraisers of the year 2019 in the area of the cryptocurrencies and blockchain are Robinhood (USD 300 M), Ripple (USD 200 M) and Bithumb (200 M). We are still in the list other companies as Thundercore (USD 50 M) and Blockchain Capital (USD 200 M). Five of the ten funding agreed in EE.STATES are to develop portfolios or platforms of digital payments.The three major mergers or acquisitions in the sector in 2019 are due to Crypto Facilities (acquired by Kraken at USD 100 M), Coins.ph (Go-Jek, USD 70 M) and the home exchange argentina Xapo (acquired by Coinbase in 55 million). Immediately, in fourth place, is located Coingeek, acquired by Square Mining at USD 45 M. Another trend that shows the report is how, by 2018, the majority of the funding was directed towards projects that work around the development of the infrastructure of the blockchain. This year, the investment and fundraising in the sector tripled compared to the previous year, as we reported in a timely manner.Despite the fact that the regulation is a point of interest, companies could also be encouraged to invest in the mining sector, seeking to diversify their portfolio and interests. Similarly, there may be an interest to invest in media, research agencies and consultancy on the industry.In addition they explain that the crisis originated in all over the world for the impact of the coronavirus brings consequences similar to those of companies specializing in blockchain, which could also affect the collection of funds and the M&A of companies in the area. However, it is expected that this crisis is conducive to the acquisition of smaller companies by part of the main actors of the ecosystem.Finally, PwC asserts to be able to help in many ways to the companies that carry out investments in the area crypto; helping in operations, strategic planning, and the enforcement of the laws imposed on the cryptocurrencies, the latter a service which the firm announced in its time.