Gaming and metaverse leader Animoca Brands is exploring a comeback to the stock market after its delisting from the Australian Securities Exchange (ASX) in March 2020.
The company, headquartered in Hong Kong, is eyeing more favorable jurisdictions such as Hong Kong and the Middle East for its potential relisting, as reported by The Information on June 26, citing co-founder Yat Siu.
Animoca Brands has been in discussions with investment banks but has not yet finalized a location or engaged an advisor. It operates globally with offices and subsidiaries in multiple countries.
ASX Delisting and New Prospects
The ASX delisted Animoca due to concerns over its adherence to listing rules, especially related to investments in crypto and blockchain enterprises, which were deemed incompatible with the exchange’s financial guidelines back then.
Financial Strategies
In its bid to raise capital, Animoca Brands recently tokenized a renowned Stradivarius violin from 1708. This rare instrument serves as collateral for a substantial loan facilitated by Galaxy Digital. The violin, once owned by Empress Catherine the Great of Russia, has been transformed into a non-fungible token (NFT), safeguarded alongside its physical counterpart by Galaxy until the loan’s repayment. The exact loan amount remains undisclosed.
Market Valuation Fluctuations
Animoca Brands experienced a valuation surge to nearly $6 billion by January 2022, buoyed by the booming crypto and gaming sectors. Despite setbacks in 2023, including the collapse of FTX and the bankruptcy of several crypto lenders, the company’s valuation dipped below $2 billion. These challenges prompted Animoca to revise its fundraising targets for a metaverse fund from $2 billion down to $800 million.
The company continues to invest in Web3 ventures and has diversified its portfolio with acquisitions ranging from gaming entities to digital marketing agencies in recent years.
Summary Review: Animoca Brands is preparing to re-enter the public market by 2025, aiming for listings in jurisdictions like Hong Kong and the Middle East after its delisting from the ASX in 2020. Despite facing regulatory challenges previously, the company is exploring new opportunities for growth and funding. Recently, Animoca tokenized a historic Stradivarius violin to secure a multimillion-dollar loan, demonstrating innovative financial strategies amid market fluctuations. With a fluctuating valuation influenced by industry dynamics, including setbacks in the crypto and gaming sectors, Animoca Brands remains committed to expanding its portfolio and navigating the evolving landscape of digital and gaming markets.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
