Animoca Brands Eyes $1 Billion Nasdaq Debut Through Reverse Merger

Core Insights - Animoca Brands has entered into a non-binding agreement with Currenc Group for a reverse merger, targeting a valuation of approximately $1 billion, expected to close by the end of 2026 [1] - The merger will allow Animoca shareholders to own about 95% of the combined entity, while Currenc shareholders will retain around 5% [1] Company Overview - Animoca Brands is returning to public markets after its 2020 delisting from the Australian Securities Exchange due to governance issues and its involvement in crypto activities [2] - The company reported $314 million in revenue for 2024, a 12% increase from the previous year, with $165 million generated from its digital asset advisory business and investments in over 600 Web3 companies [2] Merger Details - Both parties have agreed to a three-month exclusivity period to finalize terms after signing a letter of intent, requiring regulatory approvals in the US and Australia [3] - The transaction also needs approval from shareholders and court authorization in Australia before proceeding [3] Strategic Implications - Currenc plans to spin off some operations as part of the merger, providing Animoca with a Cayman Islands-incorporated holding company, enhancing liquidity and access to institutional investors [4] - The merger is described as a "transformative milestone" aimed at unlocking significant shareholder value [4] Market Innovations - Republic announced plans to tokenize Animoca shares on the Solana blockchain, allowing global investors access through digital tokens, reflecting growing interest in tokenized real-world assets [5] - Animoca researchers project that tokenization could unlock a $400 trillion market in traditional finance [5] Investment Strategy - Animoca's investment strategy focuses on a "levered bet on altcoins," with a portfolio primarily consisting of tokens from early-stage startups [6] - The company has a dedicated trading team to generate yield from these holdings, although altcoin performance lagged behind Bitcoin in 2024, particularly during October's market crash [6]