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Crypto Journalist
Anas Hassan
Crypto Journalist
Anas Hassan
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Animoca Brands has entered in a non-binding agreement with Nasdaq-listed Currenc Group to pursue a reverse merger, targeting a valuation of approximately $1 billion, with the transaction expected to close by the end of 2026.
The Hong Kong-based blockchain developer and crypto investor will see its shareholders collectively own around 95% of the combined entity’s issued shares, while existing Currenc shares will hold around 5%.
The deal marks Animoca’s return to the public markets, following its 2020 delisting from the Australian Securities Exchange due to governance concerns and its involvement in crypto-related activities.
The company reported $314 million in revenue by 2024, up 12% from the previous year, with $165 million generated through its digital asset advisory business and stake in more than 600 Web3 companies, including stakes in Consensys and Kraken.
The road to public markets is taking shape
Both parties have agreed to a three-month exclusivity period to finalize terms after signing a letter of intent.
The implementation requires regulatory approvals in the United States and Australia, as well as for Animoca to issue audited financial statements for the last few years.
The transaction also requires the approval of the shareholders of both companies and the authorization of the court in Australia before proceeding.
Currenc plans to spin off some operations as part of the merger. Executive Chairman Yat Siu said the proposed structure would provide Animoca with a holding company incorporated in the Cayman Islands, a common framework for foreign entities listed on the Nasdaq, while providing more liquidity and access to institutional investors.
Currenc co-founder and CEO Alexander Kong called the merger “a stage of transformation“I think to unlock significant value for the shareholder.
Beyond traditional equity pathways, Republic announced in September plans to tokenize Animoca shares on the Solana blockchainwhich offers access to global investors through digital tokens in its comprehensive market.
The initiative stems from the growing interest in real-world tokenized assets, which Animoca researchers project could unlock a $400 trillion market in traditional finance.
Altcoin portfolio strategy faces market headwinds
Animoca’s investment approach centers on what Siu describes as “a levered bet on altcoins,” with most of its portfolio consisting of tokens from early-stage startups.
The company employs a dedicated trading team to generate returns from these holdings.
However, the altcoin’s performance has significantly lagged behind Bitcoin in 2024, taking the hardest hit during the October market crash that wiped out $19 billion in crypto bets.
Despite the market challenges, Animoca has maintained strong fundamentals with total assets worth approximately $4.3 billion at the end of 2024.
Private investments were at $564 million, up from $690 million in 2023, although the company increased its portfolio from 450 to 540 investments in that period.
The company’s $110 million in revenue from incubated projects, including The Sandbox and Mocaverse, plus $39 million from investment activities, rounded out its diversified income streams.
The company’s valuation trajectory has been affected by broader market volatility, falling from $5.9 billion in 2022 fundraising rounds to about $1.5 billion in secondary markets by mid-2024.
While Animoca remains profitable and holds nearly $300 million in cash and stablecoins, alongside more than $500 million in digital assets, the shift in investor sentiment toward equities has reduced retail investment in altcoins compared to previous market cycles.
The expansion of the United States laid the foundation
In May, Animoca opened an office in New Yorkwith President Trump’s embrace of crypto cited as a major factor.
Siu recognized the change in policy from the heavy-handed approach of the Biden administration, noting that Animoca had not considered a list of the United States a year ago.
The company is expanding its institutional business through a joint venture with Standard Chartered and HKT to develop a Hong Kong dollar stablecoinas well as a collaboration with Provenance Blockchain Labs on a real asset marketplace.
The company employs more than 700 people and continues to weigh dual listing options.
“Hong Kong will always be important to us. We have many users in Asia“said Siu.
The merger places Animoca alongside other crypto companies, such as Kraken and Ripplewhich are looking at US listings in 2025 as regulatory conditions improve and the market recovers.
