Hong Kong-based digital entertainment and blockchain powerhouse, Animoca Brands, is strategically eyeing an expansion into the United States public markets. This move is coupled with an ambitious plan to deeply integrate cryptocurrency payment systems within the mainstream gaming sector.
US IPO Aspirations Driven by Regulatory Shifts
Yat Siu, the company’s chairman, revealed in a discussion with the Financial Times that the decision to pursue an Initial Public Offering (IPO) in the U.S. is significantly influenced by what is perceived as a more accommodating regulatory environment for digital assets under the current Trump administration. Siu characterized this period as a “unique moment,” suggesting that failing to explore entry into the world’s largest capital market would be a missed opportunity.
Animoca Brands, known for its extensive portfolio with investments in over 540 crypto and gaming startups including prominent names like OpenSea, Kraken, and Consensys, has been contemplating a return to public markets since 2023. This consideration follows a delisting from the Australian Securities Exchange in 2020 due to concerns over governance and the legal standing of certain crypto assets. Since then, the company has been actively broadening its operations, offering consultancy in the crypto space and spearheading various Web3 gaming projects.
Financial Health and Market Positioning
The company has demonstrated robust financial performance. For 2024, Animoca Brands reported an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $97 million on revenues of $314 million. This represents a substantial increase from the previous year’s figures of $34 million EBITDA and $280 million in revenue.
Currently, Animoca Brands holds approximately $300 million in cash and stablecoins, along with digital assets valued at $538 million.
“We consider ourselves the largest crypto company outside of financial services,” Siu stated. “A public listing is a way to show the world that there is a business in the crypto segment that isn’t engaged in the usual crypto hype.”
A Changing Landscape for Crypto Businesses
The pro-digital asset rhetoric associated with the Trump presidency has seemingly fostered a more favorable climate for cryptocurrency enterprises. This shift is highlighted by reports of the U.S. Securities and Exchange Commission (SEC) scaling back several legal actions against crypto firms, including notable cases involving Kraken, Consensys, and Cumberland. Such developments are encouraging major players in the crypto industry, like Deribit, a leading crypto options exchange, to relocate or expand their operations within the United States.
“A year ago, we weren’t even considering the U.S.,” Siu admitted. “But now it’s a very important part of our roadmap. If the previous administration hadn’t put pressure on the industry, we probably would have already had strong competitors in the U.S.”
Integrating Crypto into Mainstream Gaming
Animoca Brands anticipates that upcoming releases of new gaming consoles and highly anticipated titles such as Grand Theft Auto 6 will present significant opportunities. The company aims to leverage these developments to integrate cryptocurrency payments into mass-market gaming, a move that could dramatically enhance the profitability of its investments in this rapidly evolving sector.
Furthering its strategic initiatives, Animoca Brands recently announced a partnership with the Layer-2 network, Soneium, indicating continued expansion and innovation within the Web3 ecosystem.
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