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Animoca Brands Eyes $1 Billion Nasdaq Debut Through Reverse Merger

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Animoca Brands has entered right into a non-binding settlement with Nasdaq-listed Currenc Group to pursue a reverse merger, focusing on a valuation of roughly $1 billion, with the transaction anticipated to shut by the top of 2026.

The Hong Kong-based blockchain developer and crypto investor would see its shareholders collectively personal roughly 95% of the mixed entity’s issued shares, whereas present Currenc shareholders would retain about 5%.

The deal marks Animoca’s return to the general public markets, following its 2020 delisting from the Australian Securities Exchange as a consequence of governance considerations and its involvement in crypto-related actions.

The firm reported $314 million in income for 2024, up 12% from the earlier yr, with $165 million generated via its digital asset advisory enterprise and holdings in over 600 Web3 firms, together with stakes in Consensys and Kraken.

Path to Public Markets Takes Shape

Both events have agreed to a three-month exclusivity interval to finalize phrases after signing a letter of intent.

Implementation requires regulatory approvals within the US and Australia, in addition to Animoca issuing audited monetary statements for latest years.

The transaction additionally wants approval from each firms’ shareholders and court docket authorization in Australia earlier than continuing.

Currenc plans to spin off some operations as a part of the merger. Executive Chairman Yat Siu acknowledged that the proposed construction would offer Animoca with a Cayman Islands-incorporated holding firm, a typical framework for overseas entities listed on Nasdaq, whereas delivering larger liquidity and entry to institutional buyers.

Co-founder and CEO of Currenc Alexander Kong referred to as the merger “a transformative milestone” designed to unlock vital shareholder worth.

Beyond conventional fairness pathways, Republic announced in September plans to tokenize Animoca shares on the Solana blockchain, providing world buyers entry via digital tokens on its compliant market.

The initiative arose from the rising curiosity in tokenized real-world property, which Animoca researchers undertaking might unlock a $400 trillion market in conventional finance.

Altcoin Portfolio Strategy Faces Market Headwinds

Animoca’s funding strategy facilities on what Siu describes as “a levered guess on altcoins,” with most of its portfolio comprised of tokens from early-stage startups.

The firm employs a devoted buying and selling crew to generate yield from these holdings.

However, altcoin efficiency lagged considerably behind Bitcoin in 2024, taking the toughest hit throughout October’s market crash that eradicated $19 billion in crypto bets.

Despite market challenges, Animoca maintained sturdy fundamentals with complete property price roughly $4.3 billion as of late 2024.

Private funding holdings stood at $564 million, down from $690 million in 2023, although the corporate elevated its portfolio from 450 to 540 investments throughout that interval.

The agency’s $110 million in income from incubated initiatives, together with The Sandbox and Mocaverse, plus $39 million from funding exercise, rounded out its diversified revenue streams.

The firm’s valuation trajectory was affected by the broader market volatility, dropping from $5.9 billion in 2022 fundraising rounds to roughly $1.5 billion on secondary markets by mid-2024.

While Animoca stays worthwhile and holds practically $300 million in money and stablecoins, alongside over $500 million in digital property, shifting investor sentiment towards equities has decreased retail funding in altcoins in comparison with earlier market cycles.

US Expansion Laid the Foundation

In May, Animoca opened a New York office, with President Trump’s embrace of crypto cited as a significant factor.

Siu acknowledged the coverage shift from the Biden administration’s enforcement-heavy strategy, noting Animoca wouldn’t have thought-about a US itemizing a yr in the past.

The firm is increasing its institutional enterprise via a three way partnership with Standard Chartered and HKT to develop a Hong Kong dollar stablecoin, in addition to a collaboration with Provenance Blockchain Labs on a real-world asset market.

The agency employs over 700 individuals and continues weighing twin itemizing choices.

“Hong Kong is at all times going to be necessary to us. We have a number of customers in Asia,” Siu acknowledged.

The merger positions Animoca alongside different crypto corporations, comparable to Kraken and Ripple, that are eyeing US listings in 2025 as regulatory situations enhance and the market recovers.

The put up Animoca Brands Eyes $1 Billion Nasdaq Debut Through Reverse Merger appeared first on Cryptonews.

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