What could crypto-m & a look like in the second half of this year?

Guppa assumes that polygon will play an outstanding role on the M&A front in addition to FTX, Binance and strong goods-all of which have raised significant capital before the downturn.

Sam Bankman-Frieds deep bags

ftx, led by crypto billionaire Sam Bankman-Fried, recently concluded a contract to take over the struck crypto loan blockfi for $ 240 million and also provided it with a revolving credit line of $ 400 million.

"It is still unclear how it will develop," he continued. "As far as we know, there are a number of necessary [Centralized Finance] platforms beyond Celsius, Voyager and Blockfi, who could soon signal that they are in such a bad emergency that they would be open to takeovers."

But Hernandez believes that there are concerns about consolidation in the industry and finds that the ethos of crypto focuses on decentralization, maximum transparency and verifiability. He described the problems of centralized financial providers such as Celsius and Blockfi as a "belly check" and demanded more decentralized solutions.

How potential acquisitions could be addressed in a targeted manner

companies that traditionally not deal with cryptocurrencies, but are curious about the industry, are likely to take over.

"I think you will see much more in the strategic M&A area," said Rob Flaws, special consultant at Baker Botts, in an interview with block works. Lower reviews for cryptocurrencies in addition to crypto companies could trigger more deals.

Flaws found that positive regulatory steps will help in business decisions and referred to Joe Bidens Executive Order for cryptocurrency and the recently announced regulatory framework in the European Union and in Dubai.

"Crypto assets with good balance sheets will see this as an opportunity to buy some startups whose reviews have dropped, but they still have a very strong business model," said Hernandez.

other potential buyers

Larger Layer 1 companies, such as those who drive Avalanche and Solana, "sit on a decent war treasury," remarked Guppa from Delta Blockchain, and could try to acquire talents from smaller companies.

But in Gupta's world you could be exposed to the competition of Wall Street stars. "This is a great time for Goldman Sachs and JPmorgan around the world-as well as for the larger players in Web2 such as Google, Microsoft, Twitter and Block-to acquire web3 technology and to spend $ 2 to $ 3 million instead of $ 10 million a few months ago," she said.

Andy Long, CEO of the crypto mining company White Rock Management based in Switzerland, said that the mining area is also ripe for consolidation.

"Skalen effects can be achieved with miner combinations and rollups, and I assume that more than one public miner will create acquisitions to accelerate their introduction and to implement cost synergies," said Long. "The exceptionally low current reviews for miners offer opportunities for stock transactions with considerable upward potential if the market recovers."

The Bitcoin-Miner Hive Blockchain said in a statement on Thursday that he would try to finance expansion plans "in these challenging times" by selling his current production of Bitcoin and ether. Hütte 8, on the other hand, Mining said last week that it would continue to hold his Bitcoin.

"Companies with aggressive growth plans will try to achieve or exceed their goals by purchasing miners or joining them together to add the geographical diversity and the fully installed cutting units," said Long. "I assume that you will look for companies with little or no debt with fleets of the latest generation miners."

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The post What could crypto-m & a look like in the second half of this year? is not a financial advice.