Cypherpunk sells part of Animoca Brands' shares after significant price surge

Toronto-based crypto investment company Cypherpunk has sold 450,000 ordinary shares of Animoca Brands for about US$1.2 million.

After selling the shares, Cypherpunk still holds 1.55 million ordinary shares of Animoca Brands. In October 2021, Cypherpunk acquired two million ordinary shares of Animoca Brands through secondary market trades. Cypherpunk spent about US$1.62 million to buy the shares.

Commenting on the sale, Jeff Gao, Cypherpunk's CEO said: "We are thrilled to have invested in Animoca Brands at a time when NFTs were at an inflection point between reckoning and mass adoption. It came at the heels of Animoca brand's fundraising at a valuation of 2.2 billion and at a time when metaverse projects were in the final stages of take-off. Investing in Animoca Brands highlights Cypherpunk's ability to source exclusive global deal flow."

Earlier this month, Animoca Brands completed a capital raise of about US$358 million and is planning to continue funding strategic acquisitions and investments, product development, and licenses for popular intellectual properties. The latest round of funding was led by Liberty City Ventures, with other investors including 10T Holdings, C Ventures, Delta Fund, Gemini Frontier Fund and Gobi Partners Greater Bay Area, to name a few. The brand said currently working to build the open metaverse by bringing digital property rights to online users through the use of blockchain and NFTs.

In 2021, Animoca Brands raised US$216.28 million to power its vision of digital property rights and the open metaverse, while its subsidiary The Sandbox completed a capital raise of US$93 million in November 2021. The company said the global video game market was estimated to generate US$180.3 billion in 2021, while the metaverse market size is expected to grow to around US$829 billion by 2028.

Animoca Brands has been active in the market too. It decentralised gaming virtual world and subsidiary, The Sandbox, added eight partners in Hong Kong to create its cultural hub Mega City. To go with the announcement, the company launched a new LAND sale on 13 January, allowing players to purchase spots near the LANDs of the new partners.

The partners are from the film, music, entertainment, acting, professional services, finance, real estate, and gaming sectors. Partners who acquired LAND NFTs to build Mega City in The Sandbox’s metaverse include Hong Kong tycoon Adrian Cheng, alternative investing leader Sun Hung Kai & Co, professional services firm PwC Hong Kong, blockchain-related investment and asset management company TIMES CAPITAL, director, producer and actor Stephen Fung and international star Shu Qi, renowned musician Dough-Boy, game IP Little Fighter, and local illustrator Dreamergo.

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