Animoca Brands, Chainalysis among crypto firms targeted by $500 million fund: report

Silicon Valley and United Arab Emirates-based Crypto 1 is actively scouting the Australian market — targeting crypto firms like blockchain gaming business Animoca Brands and data analysis firm Chainalysis — for its C1 Fund.

The $500 million fund is looking to acquire secondary shares at significant discounts — taking meetings with several local venture firms and offering to buy private holdings at 50% to 80% less than their last valuation, according to a pitch deck obtained by The Australian Financial Review outlining C1’s strategy.

C1 Fund, founded by former Coinbase lawyers and investors, is reportedly eyeing companies with a minimum last-round valuation of $300 million, particularly those at the Series C funding stage or later, to invest between $20 million to $50 million. “Due to current market conditions in the public and private markets, hyperinflation and rising interest rates we believe the digital assets market offers very attractive valuations in the secondary market,” the deck reads, according to The Financial Review.

Animoca Brands and Chainalysis targeted

Hong Kong-based Animoca Brands, once listed on the Australian Securities Exchange, is reportedly one of C1 Fund’s targets. Animoca was delisted from the ASX in 2020 following breaches, including governance items, involvement in crypto-related activities and substantial use of SAFEs (Simple Agreements for Future Equity) issued by subsidiaries.

Animoca has since grown to a $5.9 billion valuation as of last year. C1 Fund is looking to purchase its shares at approximately $0.73 each, a 75% reduction from its last capital raise price of around $2.95, The Financial Review reported.

C1 Fund is also reportedly setting its sights on Chainalysis, a firm specializing in blockchain analysis and investigation services. Chainalysis was valued at $8.6 billion in 2022, with C1 Fund reportedly telling investors around $30 million shares are available on the secondary market at a 65% discount of $15.

The C1 Fund, which intends to invest across multiple geographies focusing on secondaries in blockchain, crypto, web3 and fintech companies, was announced in March.

Crypto 1 and Animoca Brands did not respond to a request for comment from The Block. Chainalysis declined to comment.