Animoca Brands, a top crypto game maker and investment firm valued at $5.9 billion in its most recent fundraising round in 2022, is considering an initial public offering (IPO) in 2025.
According to Animoca co-founder Yat Siu, the company is exploring potential IPO sites such as Hong Kong and the Middle East. The company was first listed on the Australian Securities Exchange. However, it was delisted in March 2020 due to multiple regulatory infractions.
Both Hong Kong and the Middle East have positioned themselves as crypto-friendly hubs by implementing regulations specifically tailored to meet the needs of crypto companies. This is part of their broader efforts to attract tech firms and expand capital markets in these regions.
The exact location for the initial public offering (IPO) has yet to be finalized. However, Animoca’s substantial investments in non-fungible tokens (NFTs) and crypto gaming companies indicate a strong strategic direction for the potential public listing.
Yat Siu, co-founder of Animoca, confirmed the company is in talks with investment banks to secure guidance for the IPO process, but an advisor has yet to be chosen.
The crypto game industry has had a difficult year with few breakout successes, affecting private market valuations. For example, The Sandbox, another cryptocurrency game developer, recently received financing at a $1 billion value, which is much lower than its projected $4 billion valuation in 2022.
Animoca’s IPO intentions are in line with those of other cryptocurrency businesses such as Circle and Kraken. Listing outside of the United States may have a smaller impact on stock prices, but rivalry from locations such as the Middle East and Hong Kong to become crypto hubs may influence their decision.
Historically, significant financial listings such as the Coinbase IPO have marked market peaks, which could indicate similar developments.
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