Blockchain Gaming Giant Animoca Brands Targeted by C1 Fund
A recent report by the Australian Financial Review reveals that Animoca Brands, a blockchain-based gaming business, is among several cryptocurrency companies being pursued by a $500 million fund called C1 Fund. The fund, founded by former Coinbase lawyers and investors, specializes in acquiring secondary shares at discounts of up to 80 percent.
C1 Fund’s Strategy and Targets
C1 Fund has engaged in discussions with local venture firms to purchase private holdings from investors at discounts ranging from 50 to 80 percent of their last valuation. The fund focuses on crypto companies with a minimum valuation of $300 million in their last funding round, preferably at Series C or later stages. It aims to invest between $20 million and $50 million in these companies.
Animoca Brands: From ASX to Private Company
Animoca Brands, which was delisted from the ASX in 2020 and replaced stock for crypto tokens, has experienced significant growth and is now valued at $7.8 billion as a private company. C1 Fund has offered to purchase Animoca Brands’ shares at a reduced price of around $1.12, compared to the previous sale price of approximately $4.50.
Chainalysis: Discounted Shares Available
Chainalysis, a US-based company providing investigation and blockchain analysis services, is also on C1 Fund’s radar. The fund has access to around $30 million of Chainalysis’ secondary preferred shares at a discounted price of approximately $15 per share, representing a 63 percent discount compared to its last capital raise.
Immutable Not a Target for C1 Fund
High-profile crypto gaming developer Immutable, valued at $2.5 billion, has not been approached by C1 Fund for the acquisition of secondary shares. Immutable’s previous secondary sale involved shares acquired at the $2.5 billion valuation by US-based venture firm PrinceVille.
Local Investors Hesitant
While C1 Fund aims to unlock liquidity for venture investors, local investors seem hesitant to part with their investments that have withstood the crypto market’s downturn. The report suggests that as the cryptocurrency market evolves, institutional investor interest, regulatory developments, and technological advancements will shape its future trajectory.
Hot Take: Growing Confidence in Crypto Sector
The pursuit of crypto firms like Animoca Brands and Chainalysis by the $500 million investment fund reflects the increasing confidence in the sector’s potential and opportunities for both investors and companies. As institutional investors show more interest and the industry continues to advance, the future of the cryptocurrency market looks promising.
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