Home Manufacturer fund Animoca brands hit $5.9 billion valuation as crypto winter deepens

Animoca brands hit $5.9 billion valuation as crypto winter deepens


Blockchain game maker and crypto investor Animoca Brands secured $75 million in a funding round that values ​​the Hong Kong-based company at $5.9 billion.

Investors in the round include existing backers Liberty City Ventures, Kingsway Capital and 10T Holdings, among others, Animoca said Tuesday. The round is a second installment of the $358,888,888 fundraiser announced in January, which has been extended for due diligence purposes. Proceeds will be used for acquisitions and investments, Animoca said, as well as product development and intellectual property licensing.

Animoca’s latest move to amass more capital comes as the crypto market continues its descent into the doldrums. The insolvency of Singapore-based crypto hedge fund Three Arrows Capital has caused some of its counterparties to scramble to recover their assets and recoup their losses.

The market’s cascading losses follow the collapse of stablecoin Terra and Fed interest rate hikes that prompted investors to dump risky assets. The market value of all cryptocurrencies has fallen 70% from its high of $3 trillion in November, according to tracker CoinGecko.

“There is no doubt that the fundraising environment has become more difficult, but at the same time, the current crypto climate has also allowed some users to get a better entry point to the open metaverse,” said said Yat Siu, co-founder and president of Animoca. in an email. “Of course we have to be a little more careful, but we have a long-term vision for this space and we are both committed and patient.”

Just last week, Animoca led a $32 million funding round from blockchain game maker Planetarium Labs. It has also acquired Prague-headquartered Notre Game, which is advancing in chain gaming. The sector remained relatively resilient in the face of the market slowdown. It only saw a 5% drop in unique active wallets in the second quarter, compared to a 26% drop in the broader crypto industry, according to data from DappRader.

Yat thinks the whole industry will recover in one to two years. “In the same way that Covid has exposed systemic issues in the physical world and pushed more people to spend online, the current economic circumstances will highlight opportunities in the open metaverse,” he said. “New businesses are emerging in the metaverse that are growing in defiance of recent market trends, providing more jobs and services that help fuel the virtual economy.”

Animoca was created in 2014 to develop games for smartphones and tablets. The company ventured into blockchain gaming around 2018, creating mega hits such as the sandbox, a decentralized virtual world. The company has also actively invested in crypto and blockchain startups. He has already built a portfolio of more than 340 investments, including NFT market leader OpenSea and Dapper Labs, developer of blockchain game CryptoKitties.