Crypto dealmaking has surpassed all previous records in 2025, with total mergers and acquisitions exceeding $8.6 billion by November 20. This figure represents more than the combined total of the last four years for the sector.
According to Architect Partners, which employs a different tracking methodology, the total value reaches $12.9 billion. Regardless of the specific count, 2025 marks an unprecedented year for consolidation within the cryptocurrency industry.
This surge in activity began earlier in the year, spurred by a combination of interest rate cuts, evolving regulatory frameworks, and a robust crypto market that characterized the early part of President Donald Trump’s administration.
“Major crypto companies have become more acquisitive in 2025, with rate cuts, regulatory clarity, and the crypto bull market earlier in the year shifting them into growth mode,” stated PitchBook.
Coinbase and Kraken Lead Billion-Dollar Acquisitions
Significant transactions have shaped the landscape, with Coinbase acquiring options exchange Deribit for $2.9 billion. Kraken followed suit by purchasing NinjaTrader, a platform catering to retail futures trading, for $1.5 billion.
Ripple also made a substantial move, paying $1.25 billion to acquire prime broker Hidden Road. These prominent deals were instrumental in pushing 2025's transaction value beyond the previous record set in 2021.
Deal volume also reached a new high, with 133 transactions finalized this year, an increase from 107 in 2022. The prior record for deal value, $4.6 billion in 2021, was significantly outpaced. This growth was largely driven by aggressive acquisition strategies from companies like Coinbase, which has completed 24 deals since 2020, with eight occurring in the last twelve months alone.
However, the market experienced a sharp downturn by October, leading to a loss of over $1 trillion in value. Cryptocurrency prices fell dramatically, impacting publicly traded companies. Coinbase, still the largest crypto exchange in the U.S., saw its market capitalization decrease by approximately 20% during the quarter. Despite this decline, its value remains over 8% higher for the year, though the recent slide has been severe.
American Bitcoin, a mining company with ties to the Trump family, went public in September through a merger. Since October 1, its stock value has fallen by roughly 70%. This trend is not isolated; companies that went public primarily to hold Bitcoin are now facing significant pressure as valuations plummet and investor confidence erodes.
Pompliano and Cantor SPACs Face Pressure from Redemptions
One notable deal currently under scrutiny involves Twenty One Capital, a Bitcoin company supported by SoftBank and Tether, merging with Cantor Equity Partners. This special-purpose acquisition company (SPAC) is led by Brandon Lutnick, the chairman of Cantor Fitzgerald.
Investors are scheduled to vote on the approval or rejection of this deal. A separate vote is also underway for a second transaction involving Anthony “Pomp” Pompliano’s ProCap BTC and Columbus Circle Capital Corp. I. The redemption rate, which indicates the percentage of shares being exchanged for cash, will be a critical metric to monitor.
Both SPACs are currently trading significantly below their previous peak values, creating financial challenges. If redemption rates are excessively high, these deals could potentially fail, which might complicate Brandon Lutnick's subsequent plans for another SPAC merger with a Bitcoin firm named BSTR (Bitcoin Standard Treasury Co).
The terms of the two current SPAC deals differ. The Cantor-Twenty One deal secured $165 million through a PIPE (Private Investment in Public Equity). Shares were initially priced at $21 in June, a valuation nearly 50% higher than Tuesday's closing price. Without a market recovery, maintaining this valuation could prove difficult.
The ProCap BTC deal includes a provision for 9 million shares to be allocated to SPAC sponsors, a standard promote structure where insiders receive shares at a nominal cost. This type of arrangement faced criticism during the previous SPAC downturn but continues to be utilized.
An entity associated with Pompliano invested $8.5 million and is expected to hold over 10 million shares upon the deal's completion. Based on current market prices, these shares are valued at more than $100 million. Pompliano is also slated to continue his involvement with the new company, offering consulting, marketing, and advertising services.