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Latest crypto M&A deals signal ‘the tide is shifting’

Latest crypto M&A deals signal ‘the tide is shifting’

BlockworksBlockworks2024/11/15 16:55
By:Blockworks

Crypto M&A developments could accelerate in Q4 and 2025, perhaps serving as a barometer for the sector’s trajectory

It’s been a busy week for crypto M&A — a signal the post-election sentiment shift could be a catalyst for even more such deals. 

Architect Partners founder Eric Risley noted that crypto regulatory uncertainty in the US has put a damper on M&A activity, given the country’s “outsized influence” on that front.

But Donald Trump’s election victory has spurred crypto price momentum, in part due to industry expectations around greater regulatory clarity and a less antagonistic approach to the segment. 

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“It’s frankly too early to have a clear vision as to exactly what those regulations will look like or timing,” Risley said. “However, it’s clear the tide is shifting.”

Since hitting a peak in March, trading volumes have been roughly flat over the past six months. The number of crypto M&A deals shrunk from 50 during the second quarter to 35 in Q3, Architect Partners data shows.

“Perhaps we’re now at a new level of sustainable volume which is a major factor in the growth and profitability of trading-related crypto businesses,” Risley explained. 

Six of the 22 crypto M&A deals so far announced in Q4 were revealed this week. 

That includes two asset management-centric transactions shared yesterday: Bitwise’s buy of Ethereum staking provider Attestant and an intended merge between Arca and BlockTower. Then this morning, Crypto.com said it bought Fintek Securities, a brokerage service and trading company with an Australian Financial Services Licence.

And let’s not forget the other big deal last month ( Stripe’s buy of Bridge ), which Risley said “caught senior executive and board level attention across a broad array of crypto and traditional financial services companies.”

The tldr? Crypto M&A developments could accelerate in Q4 and 2025, perhaps serving as a barometer for the sector’s trajectory.

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  • Architect Partners
  • M&A
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