Hong Kong-based Animoca Brands, a leading investor in blockchain gaming and digital assets, is planning to list on a US stock exchange as Donald Trump’s administration adopts a light-touch regulatory approach toward cryptocurrencies. This move represents a “unique moment” for Animoca to tap into the world’s largest capital market, according to Yat Siu, the company’s executive chair.
A Strategic Shift Toward the US Market
Animoca’s decision to pursue a US listing comes amid a surge in cryptocurrency prices and renewed optimism in the digital asset sector. Siu emphasized that an announcement could come “soon,” with the company exploring various shareholding structures. Notably, the timing of the listing is unlikely to hinge on market conditions, underscoring Animoca’s confidence in its growth trajectory.
“It’s a unique moment in time. I feel like it would be one heck of a wasted opportunity if we didn’t at least try.” – Yat Siu, Executive Chair, Animoca Brands
This marks a significant shift for Animoca, which had previously avoided a US listing due to the stringent regulatory environment under the Biden administration. Under Joe Biden, dozens of lawsuits and criminal cases were filed against crypto companies, deterring many from entering the US market. However, Trump’s pro-crypto stance has reversed this trend, making the US an attractive destination for digital asset firms.
Bitcoin, for instance, has surged over 50% to above $102,000 since Trump’s re-election in November. The president’s pledge to position the US as a global hub for digital assets has already attracted companies like Deribit, the world’s largest cryptocurrency options exchange, to relocate or expand their operations in the country.
Animoca’s Competitive Edge in Blockchain Gaming
Animoca’s strategic focus on blockchain-based video gaming and crypto investments has positioned it as a leader in the digital asset space. Since its delisting from the Australian Stock Exchange in 2020 due to governance concerns, the company has expanded its portfolio significantly. Today, it holds stakes in prominent platforms such as OpenSea, the leading marketplace for non-fungible tokens (NFTs), Kraken, a major US crypto exchange, and Consensys, a blockchain software group.
The company’s revenue grew from $280M to $314M in the year ending December 2023, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising from $34M to $97M. While these figures remain unaudited, they highlight Animoca’s robust financial performance and expanding influence in the crypto ecosystem.
Additionally, Animoca boasts a balance sheet with nearly $300 million in cash and stablecoins and $538 million worth of digital assets. With investments in over 540 companies, Siu describes Animoca as “the biggest non-financial services crypto firm,” emphasizing its unique position in the industry.
Broader Implications for the Crypto Industry
Trump’s regulatory pivot has created a favorable environment for crypto companies seeking to innovate and scale within the US. By dropping enforcement cases initiated under the Biden administration, the Trump administration has signaled a commitment to fostering innovation in the digital asset space.
Siu noted that the previous regulatory crackdown stifled innovation in the US, giving overseas companies like Animoca a competitive edge. A year ago, a US listing was not on Animoca’s radar, but now it is “a very important part of the road map.”
“If the US didn’t do what they did with the regulators [under Biden], we probably would have competitors in the US. Normally we’d be fighting with some giant or something. It’s the biggest market, so we should go there, right?” – Yat Siu
Gaming and Crypto Convergence: A Growth Opportunity
Animoca anticipates further growth opportunities as the gaming industry evolves. The expected release of new consoles and blockbuster titles like Grand Theft Auto 6 presents a chance to integrate crypto-based payment systems into gaming ecosystems. Such innovations could drive revenue growth across Animoca’s portfolio of investments.
By going public, Animoca aims to showcase its unique business model—one that transcends traditional crypto activities like trading and mining. Siu believes that a public listing will help communicate Animoca’s value proposition to a broader audience, positioning it as a trailblazer in the intersection of gaming, blockchain, and digital assets.
Challenges and Opportunities Ahead
While Animoca’s planned US listing reflects optimism about the future of digital assets, challenges remain. Regulatory uncertainty persists, and the volatile nature of cryptocurrencies poses inherent risks. Moreover, the company must navigate the complexities of maintaining transparency and compliance in a rapidly evolving industry.
Despite these hurdles, Animoca’s leadership views the current moment as a pivotal opportunity to solidify its presence in the global crypto landscape. Its ambitious plans underscore the transformative potential of blockchain technology in reshaping industries beyond finance.
Final Thoughts
Animoca Brands’ decision to pursue a US listing highlights the growing convergence of crypto, gaming, and mainstream capital markets. Underpinned by Trump’s crypto-friendly policies, the move reflects a strategic effort to capitalize on the US’s status as the world’s largest capital market.
As Animoca charts its path forward, its success could serve as a blueprint for other digital asset firms seeking to bridge the gap between innovation and regulation. For now, all eyes are on Animoca as it prepares to make its mark on Wall Street.
