Crypto 1 Launches C1 Fund to Acquire Discounted Shares
Crypto 1 has introduced the C1 Fund, a $500 million investment vehicle aimed at purchasing discounted secondary shares in Australian crypto firms. The fund, established by former Coinbase lawyers and investors, seeks to acquire private holdings at significant discounts, ranging from 50% to 80% below previous valuations.
The C1 Fund focuses on companies that were valued at a minimum of $300 million in their last funding round, particularly those at or beyond the series C stage. Investments are expected to range between $20 million and $50 million. This strategy is driven by attractive valuations in the digital assets market due to current market dynamics like hyperinflation and rising interest rates.
Targeting Animoca Brands and Chainalysis
One of the fund’s targets is Hong Kong-based Animoca Brands, which saw its valuation reach $5.9 billion last year despite previous governance issues and involvement in crypto-related activities. The C1 Fund aims to purchase Animoca Brands’ shares at a 75% discount from the last capital raise price.
Another target is Chainalysis, a blockchain analysis firm valued at $8.6 billion in 2022. The C1 Fund is eyeing a 65% discount on the secondary market for Chainalysis shares.
Growing Interest in Secondary Market Opportunities
The launch of the C1 Fund reflects the increasing interest in secondary market opportunities within the digital assets space. This move highlights the potential for discounted acquisitions and underscores shifting dynamics in the crypto market.
Attempts to obtain comments from Crypto 1, Animoca Brands, and Chainalysis regarding these developments were either unanswered or declined.
Hot Take: Crypto 1’s C1 Fund Seeks Bargain Deals in Crypto Market
Crypto 1’s newly launched C1 Fund presents an opportunity for investors to acquire discounted shares in Australian crypto firms. With a focus on companies valued at a minimum of $300 million, the fund aims to capitalize on attractive valuations resulting from market dynamics like hyperinflation and rising interest rates. By targeting prominent players like Animoca Brands and Chainalysis, the C1 Fund aims to purchase shares at substantial discounts, ranging from 65% to 75% below previous valuations. This move reflects the growing interest in secondary market opportunities and signals a shift in the crypto landscape. As the market continues to evolve, the C1 Fund presents an intriguing option for investors seeking bargain deals.
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