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Crypto M&A deal count jumps in 2022

WHAT’S MOVING CRYPTO
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Aakash Athawasya
Tryna write some stuff @doodhwaladaily (will buy you milk if you ask nicely)
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Crypto M&A deal count jumps in 2022

WHAT'S MOVING CRYPTO

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At the time of this writing, Bitcoin and Ethereum are up 42% and 37% on the year, respectively.

According to one measure—the difference between prices in perpetual futures and the spot market—Bitcoin investor sentiment is at its highest in 14 months.

Another bullish signal is on the horizon with Bitcoin approaching a golden cross (50DMA crossing above 200DMA).

Meanwhile, 99-year-old Charlie Munger is once again voicing his concerns about the “disgusting” asset class, calling for the US to ban crypto altogether.

Having said that…let’s get to it!

  1. Crypto M&A deal count jumps in 2022

  2. A pair of unusual partnerships

  3. Justice Department is all over SBF

1. Crypto M&A deal count jumps in 2022

Despite a year that saw Bitcoin and Ethereum crash 65% and 68%, respectively, crypto M&A enjoyed its most active year ever by number of transactions.

Deal counts jumped to 204 in 2022, 13% over 2021’s 183.

On the other hand, deal values dropped 64% from $6 billion to $2 billion, mirroring the downturn in crypto prices.

Of note, however, was an increased number of “bridge transactions,” which are characterized by non-crypto companies acquiring crypto-native firms.

These bridge transactions accounted for 36% of all transactions in 2022 which suggests future deal appetite could expand.

2. A pair of unusual partnerships

Crypto is making its way into a couple of mainstream institutions.

Pfizer’s venture arm participated in a $4.1 billion token-based round for VitaDAO, a decentralized autonomous organization that funds research projects focused on longevity and the aging process.

The DAO is part of the so-called DeSci (decentralized science) movement which leverages crowdfunding and NFTs representing intellectual property as sources for funding.

Meanwhile, the US Air Force awarded a $30 million strategic technology initiative to blockchain-as-a-service provider SIMBA.

SIMBA had already been collaborating with the Air Force and Department of Defense to create blockchain-based systems for operations like supply chain management.

Maybe it’s mainstream institutions making their way into crypto?

3. Justice Department is all over SBF

Earlier this month, Sam Bankman-Fried (SBF) sent an encrypted message to FTX US’ general counsel, a potential witness in his criminal case.

The Department of Justice (DOJ) is now looking to ban all communications between SBF and current/former FTX employees.

The defense put up by his lawyers (paraphrasing): “SBF was just trying to help”. Sure you were…

Separately, the DOJ says that while FTX lawyers were attempting to secure assets for bankruptcy in November, SBF was busy trying to move them overseas where he believed foreign regulators would cut him more slack and even let him regain control of the company.

Meanwhile, a New York judge ruled that the identities of the mystery guarantors on SBF’s $250 billion bond should be made public.

The order is on hold until February 7th.

What else we Grittin’ On?

DMV. The California motor vehicle department is coming to the blockchain. It will use the tech to verify car titles and registrations.

NFTs. The first-ever ETF for NFTs is shutting down. The fund launched at the end of 2021

SORARE. NFT-based fantasy sports game Sorare signs a deal with the English Premier League. The crypto platform currently has ~3 million users.

BITCOIN NFT. Ordinal is a new protocol that stores NFTs on Bitcoin. And it's sparked a fiery debate.

SOURCES*

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Disclaimer:The publisher does not guarantee the accuracy or completeness of the information provided in this page.  All statements and expressions herein are the sole opinion of the author or paid advertiser.

Grit Capital Corporation is a publisher of financial information, not an investment advisor.  We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.  

THE INFORMATION CONTAINED ON THIS WEBSITE IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME.  THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION.  INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.  

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable.  They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur.  Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein.  The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the a publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities).  To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer and our terms of use. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.

For Full Terms of Use Click HERE. For the Privacy Policy Click HERE.

Gritcapital.substack.com (“Grit”) is a website owned and operated by Substack. Grit is paid fees by the companies that make investment offerings on this website. Be aware that payment of these fees may put Grit in a conflict of interest with the investor. By accessing this website or any page thereof, you agree to be bound by the Terms of Use and Privacy Policy, in effect at the time you access this website or any page thereof. The Terms of Use and Privacy Policy may be amended from time to time. Nothing on this website shall constitute an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities to any person in any jurisdiction where such an offer or solicitation is against the law or to anyone to whom it is unlawful to make such offer or solicitation. Grit is not an underwriter, broker-dealer, Title III crowdfunding portal or a valuation service and does not engage in any activities requiring any such registration. Grit does not provide advice on investments or structure transactions. Offerings made under Regulation A under the U.S. Securities Act of 1933, as amended (the “Securities Act”) are available to U.S. investors who are “accredited investors” as defined by Rule 501 of Regulation D under the Securities Act well as non-accredited investors, who are subject to certain investment limitations as set forth in Regulation A under the Securities Act. In order to invest in Regulation A offerings, investors may be asked to fill out a certification and provide necessary documentation as proof of your income and/or net worth to verify that you are qualified to invest in offerings posted on this website. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. Grit does not verify the adequacy, accuracy or completeness of any information. Neither Grit nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, valuations of securities or completeness of any information on this site or the use of information on this site. Neither Grit nor any of its directors, officers, employees, representatives, affiliates or agents shall have any liability whatsoever arising from any error or incompleteness of fact, or lack of care in the preparation of, any of the materials posted on this website. Investing in securities, especially those issued by start-up companies, involves substantial risk. investors should be able to bear the loss of their entire investment and should make their own determination of whether or not to make any investment based on their own independent evaluation and analysis.