Animoca Brands, a key player in the cryptocurrency and blockchain industries, has seen its valuation drop to approximately $1.5 billion on secondary markets—from the $5.9 billion valuation the firm reported in July 2022, when it raised $75 million. Despite the drop in valuation, Animoca reported holding nearly $3.3 billion in crypto, cash, equities, and other assets at the end of the first quarter of 2024.
Yat Siu, executive chairman and co-founder of Animoca, confirmed the current valuation, which aligns with data from Bulletin, a service that tracks secondary market data for crypto companies. The decrease in valuation comes despite the company’s substantial asset base, highlighting the current sentiment among investors in secondary markets, which are typically less liquid than traditional exchanges.
NFT Market Downturn Affects Animoca Brands’ Valuation
Animoca Brands is heavily invested in the NFT sector, web3 gaming, and the metaverse. However, a downturn in the NFT market has impacted the company’s valuation. While cryptocurrency markets have shown some recovery since the crash in 2022, NFT trading volumes have significantly decreased. In July 2024, NFT trading volumes were reported at $430 million, compared to $6 billion in January 2022, Cryptomode reported.
This decline in NFT trading volumes has coincided with the drop in Animoca’s valuation, as the company’s investments in the NFT space have faced headwinds.
Animoca Brands Considers IPO and Partners with Lamborghini
Amidst these challenges, Animoca Brands is considering an initial public offering (IPO). Siu indicated that if the company were publicly listed, the current discrepancy between its asset value and market valuation might align more closely.
Siu said: “It’s just an information mismatch about the discrepancy. “If we were properly listed, that would probably error correct.”
In addition to its financial strategies, Animoca has also announced a new partnership with Lamborghini. This collaboration aims to create unique experiences for Lamborghini’s fans and customers through blockchain technology, further expanding Animoca’s footprint in the automotive and NFT sectors.
