Animoca Brands reveals strong financial position as it looks to capitalise on a big web3 year

Special Report: Animoca Brands, a top web3 firm focused on gaming, digital property rights and the open metaverse, has delivered a strong financial position update as it looks ahead to what could be a big H2 in 2024.

Animoca Brands has released an interim financial update on various metrics as well as an indication on what lies ahead for the company.

The overarching theme here is this: the firm is in a strong position, having continued to vigorously build and expand during the crypto bear market of 2023 and into more favourable, albeit up-and-down market conditions this year.

Animoca Brands, as a reminder, is a Fortune Crypto 40 company, and is one of the most recognisable, successful and wide-reaching firms in blockchain, particularly in the web3 gaming and metaverse sectors.

The company develops and publishes a broad portfolio of products, including original games such as The Sandbox, Phantom Galaxies, Life Beyond, and Crazy Defense Heroes. Its products utilise popular intellectual properties from the worlds of sports and entertainment, such as The Walking Dead, Power Rangers, MotoGP™, the AFL, Olympics, and Formula E.

And that’s just scratching the surface when it comes to the company’s partnerships and investments, which in recent times have been stretching further and further into strong emerging tech markets, including the Middle East.

Bitcoin, crypto and Web3 gaming in good shape this year

Animoca Brands notes that it is now “well placed to capitalise on the market rebound evident over the last few months”.

That rebound, in particular, refers to the leading crypto asset Bitcoin, which is the enduring barometer for health for the entire crypto market and usually the asset that acts as a pacesetter in bull runs, and perhaps a harbinger of things to come in more bearish times.

Recently, Bitcoin hit a series of all-time high valuations above US$70k and has been consolidating in US$60ks ever since.

In terms of crypto narratives, though, Animoca Brands singled out the Web3 gaming sector as having strengthened considerably this year.

And this is where a lot of the firm’s chips lie.

Sitting pretty in the kitty

Talking brass tacks then, Animoca Brand’s key, unaudited financial positions (non-IFRS measures) as of March 31 2024, show a strong cash and stablecoin balance of US$291 million. Additionally, digital assets on the balance sheet equate to US$558 million.

Through multiple recent investments and token launch activities, the company notes it has added US$266 million of digital assets since December 2023.

Meanwhile, off-balance sheet token reserves for all Animoca Brands Web3 subsidiaries total approximately US$1.8 billion. And that comprises approximately US$1.3 billion in Liquid tokens and US$542 million in lower-liquidity tokens.

A further thing to note here – the company’s financial update excludes the value of its 400 or thereabouts minority investments in Web3 companies, for which valuation work is ongoing.

Right then. What next? The Bitcoin halving is imminent, and the crypto market will be expecting strong price action, along with heavy volatility up and down, in the months to come.

In the meantime, Animoca Brands says it will be working diligently to provide additional financial updates and audited financial statements to keep its investors fully informed as it seeks to capitalise on what could be a big H2 2024.

This article was developed in collaboration with Animoca Brands, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.