Animoca Brands has entered into a non-binding agreement with Nasdaq-listed Currenc Group to pursue a reverse merger, targeting a valuation of approximately $1 billion, with the transaction expected to close by the end of 2026.

The Hong Kong-based blockchain developer and crypto investor would see its shareholders collectively own approximately 95% of the combined entity’s issued shares, while existing Currenc shareholders would retain about 5%.

The deal marks Animoca’s return to the public markets, following its 2020 delisting from the Australian Securities Exchange due to governance concerns and its involvement in crypto-related activities.

The company reported $314 million in revenue for 2024, up 12% from the previous year, with $165 million generated through its digital asset advisory business and holdings in over 600 Web3 companies, including stakes in Consensys and Kraken.

Path to Public Markets Takes Shape

Both parties have agreed to a three-month exclusivity period to finalize terms after signing a letter of intent.

Implementation requires regulatory approvals in the US and Australia, as well as Animoca issuing audited financial statements for recent years.

The transaction also needs approval from both companies’ shareholders and court authorization in Australia before proceeding.

Currenc plans to spin off some operations as part of the merger. Executive Chairman Yat Siu stated that the proposed structure would provide Animoca with a Cayman Islands-incorporated holding company, a common framework for foreign entities listed on Nasdaq, while delivering greater liquidity and access to institutional investors.

Co-founder and CEO of Currenc Alexander Kong called the merger “a transformative milestone” designed to unlock significant shareholder value.

Beyond traditional equity pathways, Republic announced in September plans to tokenize Animoca shares on the Solana blockchain, offering global investors access through digital tokens on its compliant marketplace.

The initiative arose from the growing interest in tokenized real-world assets, which Animoca researchers project could unlock a $400 trillion market in traditional finance.

Altcoin Portfolio Strategy Faces Market Headwinds

Animoca’s investment approach centers on what Siu describes as “a levered bet on altcoins,” with most of its portfolio comprised of tokens from early-stage startups.

The company employs a dedicated trading team to generate yield from these holdings.

However, altcoin performance lagged significantly behind Bitcoin in 2024, taking the hardest hit during October’s market crash that eliminated $19 billion in crypto bets.

Despite market challenges, Animoca maintained strong fundamentals with total assets worth approximately $4.3 billion as of late 2024.

Private investment holdings stood at $564 million, down from $690 million in 2023, though the company increased its portfolio from 450 to 540 investments during that period.

The firm’s $110 million in revenue from incubated projects, including The Sandbox and Mocaverse, plus $39 million from investment activity, rounded out its diversified income streams.

The company’s valuation trajectory was affected by the broader market volatility, dropping from $5.9 billion in 2022 fundraising rounds to approximately $1.5 billion on secondary markets by mid-2024.

While Animoca remains profitable and holds nearly $300 million in cash and stablecoins, alongside over $500 million in digital assets, shifting investor sentiment toward equities has reduced retail investment in altcoins compared to previous market cycles.

US Expansion Laid the Foundation

In May, Animoca opened a New York office, with President Trump’s embrace of crypto cited as a major factor.

Siu acknowledged the policy shift from the Biden administration’s enforcement-heavy approach, noting Animoca wouldn’t have considered a US listing a year ago.

The company is expanding its institutional business through a joint venture with Standard Chartered and HKT to develop a Hong Kong dollar stablecoin, as well as a collaboration with Provenance Blockchain Labs on a real-world asset marketplace.

The firm employs over 700 people and continues weighing dual listing options.

“Hong Kong is always going to be important to us. We have a lot of users in Asia,” Siu stated.

The merger positions Animoca alongside other crypto firms, such as Kraken and Ripple, which are eyeing US listings in 2025 as regulatory conditions improve and the market recovers.

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