Animoca Brands, a blockchain-based gaming business once listed on the ASX, is one of the companies included in a $500 million fund that is seeking to purchase secondary shares in crypto companies at a discount of up to 80%.
The C1 Secondaries Fund reportedly expressed interest in investing in crypto companies at discounts of up to 80% off their all-time highs. C1 Secondaries Fund, boasting assets worth $500 million, is aiming to invest in select crypto firms with strong growth potential, such as Animoca Brands and Chainalysis.
A presentation document’s details, as reported by the Australian Financial Review on December 10, unveil that the fund, based in both Silicon Valley and the United Arab Emirates, is poised to allocate funds ranging from $20 million to $50 million for acquiring private stakes in cryptocurrency firms valued at $300 million and beyond during their latest funding cycle.
While Animoca Brands previously sold shares at $4.50, the C1 Fund, co-founded by a former Coinbase executive, reportedly offers to buy the shares at a 75% discount, setting the new price at $1.12.
The C1 Secondaries Funds is offering a 63% lower price Chainalysis shares are subject to a 63% lower offer than the company’s last capital raise by the C1 Secondaries Fund.
The C1 Secondaries Fund’s investment strategy likely stems from the recent crypto market surge, providing an opportunity to acquire shares in crypto companies at discounted prices.
Since the beginning of December, Bitcoin’s value has surged above $40,000, contributing to a substantial increase in the overall market capitalization, which now exceeds $1.6 trillion.
In addition to the rise in cryptocurrency values, non-fungible tokens (NFTs) are also witnessing a surge in the market. According to a DappRadar report on December 8, the trading volume for NFTs nearly reached $1 billion in November.
The surge in NFT trading volume accompanies a more than 100% increase in the average transaction value in November compared to previous months.
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