Crypto Fund Sets Sights On Animoca Brands And Chainalysis In $500 Million Investment Drive

In a recent report by the Australian Financial Review, it has been revealed that Animoca Brands, a blockchain-based gaming business formerly listed on the Australian Securities Exchange (ASX), is among several cryptocurrency companies being targeted by a $500 million fund. 

The fund, known as C1 Fund, reportedly specializes in acquiring secondary shares at significant discounts of up to 80 percent.

Blockchain Gaming Giant Animoca Brands In Crosshairs Of C1 Fund

C1 Fund, founded by a group of former Coinbase lawyers and investors, has held discussions with several local venture firms, offering to purchase private holdings from investors at discounts ranging from 50 to 80 percent of their last valuation. 

Per the report, the fund’s strategy focuses on crypto companies with a minimum valuation of $300 million in their last funding round, preferably at Series C or later stages. C1 Fund aims to invest between $20 million and $50 million in these companies.

Citing the current market conditions characterized by hyperinflation and rising interest rates, C1 Fund believes that the digital assets market offers attractive valuations in the secondary market, as stated in its pitch deck.

Animoca Brands, delisted from the ASX in 2020 and replaced stock for crypto tokens, has become one of C1 Fund’s targets. Since its exit from ASX, Animoca Brands has experienced remarkable growth, becoming a private company valued at $7.8 billion. 

The company has received backing from venture firms such as Koda Capital and KTM Ventures. C1 Fund has reportedly offered to purchase Animoca Brands’ shares at a significantly reduced price of around $1.12, compared to the previous sale price of approximately $4.50.

Discounted Shares In Blockchain Analysis Services

Chainalysis, a US-based company providing investigation and blockchain analysis services, is also on C1 Fund’s radar. Chainalysis, last valued at $8.4 billion in 2022, has around $30 million of secondary preferred shares available at a discounted price of approximately $15 per share, representing a 63 percent discount compared to its last capital raise.

However, high-profile crypto gaming developer Immutable, valued at $2.5 billion in its last Series C capital raise, does not appear to be a target for C1 Fund. Immutable has stated that C1 Fund has not approached the company or its investors regarding acquiring secondary shares. 

Immutable’s previous secondary sale involved shares acquired at the $2.5 billion valuation by US-based venture firm PrinceVille.

Ultimately, while C1 Fund presents itself as a partner to help venture investors unlock liquidity, the report suggests that local investors seem hesitant to part with their investments that have weathered the crypto market’s downturn over the years.

As the cryptocurrency market evolves, the interest from institutional investors, regulatory developments, and technological advancements will shape its future trajectory. 

The $500 million investment fund’s focus on crypto firms such as Animoca Brands and Chainalysis reflects the growing confidence in the sector’s potential and its opportunities for investors and companies.

Featured image from Shutterstock, chart from TradingView.com