In Brief
- Animoca Brands is pursuing a Nasdaq listing through a reverse merger with Currenc Group Inc., targeting a valuation of $2.4 billion.
- The merger will result in Animoca shareholders owning 95% of the new entity, while Currenc shareholders receive 5%.
- The transaction aims to establish a publicly traded conglomerate diversified across digital assets like DeFi, NFTs, and AI.
Merger Strategy for Nasdaq Listing
Animoca Brands, a company dedicated to blockchain investments, has opted for a reverse merger strategy with fintech entity Currenc Group Inc. for its planned Nasdaq listing. This strategic move does not involve a conventional initial public offering (IPO). Instead, the merger is aimed at leveraging Currenc’s existing financial technology market presence to facilitate Animoca’s entry into American capital markets.
Financial Dynamics and Company Valuation
Following the merger, the newly established entity will be acknowledging a combined valuation of approximately $2.4 billion, based on Currenc’s market cap just before the announcement. The projected structure of the merger will have existing Currenc shareholders owning 5% of the emergent company, with Animoca’s shareholders holding the remaining 95%. Apart from achieving the Nasdaq listing, this reorganization will lead to Currenc spinning off most of its core businesses, including its AI-powered solutions and digital remittance platforms, into an independent company.
Future Projections and Impact
Animoca Brands ended the year 2024 with a robust balance sheet, reporting $4.3 billion in total assets. Post-merger, the conglomerate anticipates creating a unique investment vehicle on Nasdaq, offering direct exposure to a myriad of sectors like decentralized finance (DeFi), non-fungible tokens (NFTs), AI technology, and more within the digital assets space.
Yat Siu, the executive chairman of Animoca Brands, expressed enthusiasm about the merger’s potential to revolutionize the investment landscape by stating, “The proposed merger of Animoca Brands and Currenc will result in the world’s first publicly-listed, diversified digital assets conglomerate, giving investors on Nasdaq direct access to the growth potential of the trillion-dollar altcoin digital economy through a single, diversified vehicle spanning DeFi, AI, NFTs, gaming, and DeSci.”
He further elaborated on the strategic impact of the merger, highlighting, “We believe that this proposed transaction would usher in a new asset class that should position investors at the forefront of one of the greatest opportunities of our generation.”
