The crypto world is developing rapidly, and this affects the market valuation of private crypto companies. By 2021, at least 64 crypto companies achieved unicorn status.
The analytical company Arcane Research published a report on the development of the crypto market in 2021. According to analysts, this year the number of M&A deals in the cryptocurrency sector has risen to 150. The cumulative volume of seed funding rounds in the leading crypto companies reached $142 billion.
The aggregate conservative market valuation of non-public crypto companies exceeded $430 billion, which is about 40% of bitcoin‘s market capitalization.
The aggregate valuation of public crypto companies that achieved unicorn status stands at $110 billion, the bulk of which falls on Coinbase, whose shares started trading on Nasdaq in spring 2021.
Thus, the market valuation of both private and public crypto companies combined is about $650 billion. At the same time, Arcane Research analysts believe that this figure is underestimated due to lack of data.
“The high valuation of crypto-related companies clearly shows that venture capital and funds both pay close attention to the sector and seek to gain exposure to further growth,” the study reads.
The report pays special attention to shares of public mining companies. In 2021, the aggregate index of the 15 largest public mining companies, weighted by market capitalization, grew by 197% versus 100% for bitcoin itself. The best results were shown by the shares of Marathon. They have added 391% in price since the beginning of 2021. The worst result was demonstrated by Bit Digital. They dropped by 56% due to increased costs for relocating operations from China to North America.