Crypto traders could have easily assumed that companies like Binance and Coinbase are doing well. Yet the relevant question is how much. A report from Arcane Research revealed some towering estimates and showed how successful public and private businesses are.
Comparing public and private companies, Arcane Research reported that a “conservative estimate” of the valuation of several private crypto companies is around $ 430 billion. The report noted that this was around 40% of Bitcoin’s market cap.
For state-owned enterprises, the aggregate valuation has been estimated at around $ 110 billion. This was after studying companies focusing exclusively on crypto.
Arcane research concluded,
“In sum, private and public crypto companies are valued at nearly $ 650 billion. However, this number is probably an underestimate. All of the private companies included in this table have already achieved unicorn status in private funding rounds. “
Battle of exchanges?
Additionally, the report noted that the valuation figure of $ 430 billion for private crypto companies took into account Binance’s supposed valuation of $ 200 billion.
In the SOE sector, Coinbase reportedly held the majority of the valuation. Other big players in this area included MicroStrategy and Square. Keeping in mind the 197% rise in the mining index, Arcane Research also commented on how public crypto companies involved in mining should have benefited from a profitable 2021.
Further noting that 64 crypto companies had become unicorns, the Arcane Research report adds,
“2021 has seen more than 150 crypto-related M&A deals and a plethora of big seed rounds, such as FTX’s rise to a valuation of $ 25 billion. “
What does this mean for an everyday trader? Well, one conclusion is that crypto investors can perhaps expect to learn more about mergers, acquisitions, and venture capital related updates.
Coinbase x Unlinked
Giving investors a little taste of what the future may hold for them, Coinbase announced on November 30 the acquisition of Unbound Security. The Israel-based company specializes in crypto security. Additionally, Coinbase announced,
“This presence in Israel will add an additional powerful element to Coinbase’s global talent acquisition strategy, building on recent advances in engineering talent bases such as India, Singapore and Brazil.”