HomeBitcoin News2022 Cryptocurrency Acquisitions Are Coming to a Halt

2022 Cryptocurrency Acquisitions Are Coming to a Halt

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The cryptocurrency space is plunging, and this is putting a huge damper on the plans of many bitcoin and blockchain-related companies across the globe.

Cryptocurrency Mergers May Not Be Going Through

2022 was set to be the year of cryptocurrency acquisitions. There were 42 acquisitions scheduled to occur over the next several months, but now it looks like these mergers aren’t happening given that the cryptocurrency arena continues to show signs of degradation and downgrading.

It’s a sad sight, and one that really puts the future of the space in question. With no mergers set to occur for the next six months at least, how can the industry grow, and without said growth, how can the digital currency space reach mainstream status?

One said acquisition that was going to take place was between Galaxy Digital – founded and run by bitcoin bull Mike Novogratz – and Bit Go, a crypto custody enterprise. The deal was announced in the early months of 2021, though at the time of writing, the companies are holding off on their plans.

Kevin Kang – who runs BK Coin Capital LP, a hedge fund in the state of New York – explained in a recent interview that he thinks this will all change in the future once the meltdown takes a breather. He believes that many investors likely don’t have to worry about the lack of acquisitions once recovery shows itself on the horizon:

I expect the amount of M&A will increase as companies with strong balance sheets look to acquire crypto firms that have valuable assets or intellectual properties and weaker balance sheets… Crypto firms are doing ‘down rounds’ and cutting their workforces. This will lead to interesting M&A opportunities and industry consolidation.

Novogratz himself says that he still plans to acquire Bit Go and that the steps for the merger will still go through, but that he is currently waiting on the crypto space to show itself as being a little stronger. He is also waiting on specific maneuvers from the Securities and Exchange Commission (SEC) before he can take the next big leap. He commented:

We’re going to hope for the best and we’re going to continue to engage with the SEC.

Could Things Get Worse?

By contrast, Eric Jackson – founder of EMJ Capital Ltd., a hedge fund in Toronto, Canada – believes the crypto market may experience even more turmoil in the coming weeks, and that this could potentially put a serious halt in the plans of Galaxy Digital. He mentioned:

They have delayed it a couple of times now, and the terms of the deal say it needs to close by the end of 2022… You would think that if Bit Go is still worth anywhere near $1.2 billion and people assumed the deal would close, Galaxy would get credit from investors in its market cap.

Nick Marinoff
Nick Marinoffhttps://www.livebitcoinnews.com/
Nick Marinoff is currently a lead news writer and editor for Money & Tech, a San Francisco-based broadcasting station that reports on all things digital currency-related. He has also written for a number of other online and print publications including Black Impact Magazine, EKT Interactive, Seal Beach USA and Benzinga.com, to name a few. He has recently published his first e-book "Take a 'Loan' Off Your Shoulders: 14 Simple Tricks for Graduating Debt Free" now available on Amazon. He is excited about the potential digital currency offers, particularly its ability to finance unbanked populations and bring nations together financially.

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