Strategic investment sees C1 Secondaries Fund target Animoca Brands
The C1 Secondaries Fund, an investment fund focused on the digital assets space with a presence in Silicon Valley and Dubai, is poised to make strategic investments in crypto powerhouses like Hong Kong-based Animoca Brands.
Ready to deploy capital
That’s according to details from a pitch deck disclosed by the Australian Financial Review on Sunday. The C1 Fund is ready to deploy substantial capital, ranging from $20 million to $50 million, to acquire private holdings in crypto companies. The fund is only interested in targeting companies that boast valuations of $300 million and above from their most recent funding rounds.
The crypto venture capital fund was co-founded by former Coinbase executives. Off the back of recent bullish momentum within crypto markets, the C1 Fund is reportedly eyeing significant discounts of nearly 80% on its investments.
Share purchase offer
The fund has extended an offer to purchase Animoca Brand shares at approximately $1.12, representing a 75% markdown from its last capital raise where shares were sold at around $4.50.
A few years ago, Animoca Brands, a firm that concentrates on blockchain gaming, non-fungible tokens (NFTs) and the metaverse, had been listed on the Australian Stock Exchange (ASX). However, in 2020, the company listing was removed due to the swapping of stock for crypto tokens. It still has involvement with Australia through equity investment from Australian firms Koda Capital and KTM Ventures.
In September, Hong Kong-based venture capital firm CMCC Global led a $20 million funding round into Animoca. At the time, it was suggested that funding would go towards further development of Mocaverse, an Animoca project involving the development of Web3-native tools geared towards the gaming and entertainment sectors.
Following some market uncertainty regarding the financial health of the company earlier this year, Animoca provided an update on its financial position, clarifying that it held $3.4 billion in cash and assets.
Chainalysis interest
The strategic move by the C1 Fund aligns with the recent uptick in the crypto space. Bitcoin (BTC), the market leader, surpassed the $40,000 price point in the first week of December, propelling the overall crypto market capitalization to over $1.6 trillion. At the time of writing, BTC hovers just over $40,000.
Similarly, the fund is weighing up an investment in American blockchain analysis firm Chainalysis, offering to acquire its shares at a substantial 63% discount from its latest capital raise.
Beyond traditional crypto assets, NFTs are experiencing a surge in market interest. A recent report by DappRadar revealed that NFT trading volume approached $1 billion in November, signaling a notable shift in user behavior. The average value of NFT transactions also witnessed a substantial increase from $126 to $270 in November.
The C1 Secondaries Fund was established in March, targeting $500 million worth of investment in blockchain, crypto, Web3 and fintech. As the C1 Secondaries Fund strategically positions itself amid the crypto market boom, its pursuit of discounted investments in industry giants like Animoca Brands and Chainalysis reflects the fund’s confidence in the sustained growth and potential of the digital assets sector.
