PricewaterhouseCoopers (PwC), one of the leading auditing companies in the world, reported a shift in fundraising of mergers and acquisition (M&A) deals in Europe and Asia. During the “Invest: Asia” forum in Singapore, the company released an in-depth analysis of the crypto sector. The report shows that 41 percent of all fundraising deals in Q2 of 2019 took place in Europe, in comparison to just 34 percent during Q2 of 2018. The Asian market also experienced increases in fundraising, as Asia is accountable for 26 percent of all fundraising deals (Q2 of 2019).
The Americas` market showed a significant drop in deals, plunging from 51 percent in Q2 of 2018 to just 28 percent in Q2 of 2019.
PwC also took into consideration the global outflow of deals and capital. From the peak of $408 million in Q1 of 2018, the number of deals and funds involved dropped by 50 percent.
Despite the drop, taking into consideration the most recent Bitcoin price movements, the global value of deals jumped from $166 million in Q1 of 2019 to $250 million in Q2 of 2019.
Lucy Gazmararian, senior manager of the fintech and crypto teams at PwC, stated that the price of Bitcoin is determinant for the entire crypto sector and investor incentives.
“As Bitcoin’s price has become volatile to a lesser extent, the global crypto market has started seeing more and more interest from investors. Activities in the M&A sector also went up as investor incentives continued to grow”, Gazmararian added.
The M&A sector saw an even bigger decline in Americas` dominance over Europe and Asia. From being accountable for over 80 percent of the M&A deals in Q1 of 2018, now the U.S. market has shrunk in half, recording 48 percent in Q2 of 2019. Total number of mergers and acquisition deals in both Europe and Asia accounted for over 50 percent in Q2 2019, compared to 17 percent in Q2 2018.
As blockchain technology evolves, investors are shifting their focus from mining towards blockchain and infrastructure, the report states. Gazmararian stated that since Q2 of 2018, the M&A deals have moved towards trading infrastructure and exchanges, leaving the mining sector consolidated.