Introduction
In a landmark move for cryptocurrency’s integration with traditional finance, Animoca Brands, one of the industry’s most prominent venture capital investors, is set to go public on the Nasdaq through a strategic reverse merger with AI-focused fintech Currenc Group. The proposed deal would see Animoca shareholders command a dominant 95% stake in the newly merged entity, marking a significant step in bringing major crypto investment power to public markets and potentially setting a new precedent for how blockchain-focused firms access traditional equity capital.
Key Points
- Animoca shareholders would control 95% of the merged entity post-transaction
- The reverse merger targets a Nasdaq listing under the Animoca Brands name
- Currenc Group is an AI-focused fintech company currently listed on Nasdaq
The Structure of a Transformative Deal
The path to public markets for Animoca Brands is being paved through a carefully structured reverse merger, a transaction detailed in a joint statement released on Monday. Currenc Group, a fintech company already listed on the Nasdaq and focused on artificial intelligence, has entered into a non-binding term sheet to acquire 100% of Animoca Brands’ issued shares. This acquisition will be executed as a reverse merger, a mechanism often used by private companies to bypass the traditional, lengthy IPO process. The ultimate goal is a listing on the prestigious Nasdaq exchange, but under the Animoca Brands banner, signaling a profound shift in corporate identity and market focus for the public entity.
The ownership structure post-merger is heavily tilted in favor of the crypto venture giant. As explicitly stated by Animoca co-founder Yat Siu in a letter to shareholders, ‘Upon completion of the reverse merger the shareholders of Animoca Brands would collectively own approximately 95% of the issued shares in the merged entity.’ This overwhelming majority control ensures that Animoca’s strategic vision and corporate culture will dominate the new publicly-traded company. The remaining 5% of the issued shares would be retained by the existing shareholders of Currenc Group, representing a significant dilution of their ownership but granting them a stake in a much larger, more diversified, and highly influential entity within the digital asset ecosystem.
Strategic Implications for Animoca and Crypto Markets
For Animoca Brands, this reverse merger represents more than just a liquidity event; it is a strategic masterstroke that bridges the worlds of cryptocurrency venture capital and traditional public equity. Gaining a Nasdaq listing provides Animoca with unparalleled visibility, credibility, and access to a deep pool of institutional and retail capital in the United States. This move effectively transplants one of the most powerful investment arms in the crypto space directly into the heart of the TradFi (traditional finance) system, potentially accelerating the flow of institutional funds into the web3 and blockchain startups within Animoca’s vast portfolio.
The decision to pursue a public listing via a reverse merger with an AI-focused fintech like Currenc Group is also highly symbolic. It underscores a growing convergence between the frontier technologies of artificial intelligence and blockchain. By taking over a shell that is already associated with AI, the new Animoca Brands entity positions itself at the nexus of these two transformative technological trends. This could broaden its investor appeal beyond pure-play crypto enthusiasts to include tech growth investors focused on the next wave of digital innovation. The move signals a maturation of the crypto industry, where its largest players are now seeking the stability, regulatory oversight, and capital access that come with a major U.S. stock exchange listing.
📎 Related coverage from: cointelegraph.com