Animoca Brands, a crypto investment company in Hong Kong, plans to list its shares in New York after President Donald Trump removed many strict cryptocurrency laws set by the Biden administration that stunted the growth of crypto businesses in the country.
Animoca’s chairman, Yat Siu, called it a rare and important opportunity to enter the world’s biggest financial market after years of tough regulations under Joe Biden that forced out many crypto companies.
Trump’s lighter crypto rules attract Animoca to Wall Street
President Donald Trump announced plans to drop several legal cases initiated under the Biden administration to show the US’s intent to solidify its global digital asset industry position. The new administration has promised to foster crypto innovation and transform the US into the leading hub for blockchain and Web3 companies, encouraging them to set up operations in the country.
Under Joe Biden’s presidential term, government agencies filed many lawsuits and launched enforcement actions against several cryptocurrencies, making startups feel unsafe about building their businesses in the US.
Many crypto firms set up their offices and projects in other countries that were more welcoming as the legal pressure in the US slowed innovation, and the country lost ground as a leader in digital assets.
However, Animoca’s executive chairman, Yat Siu, mentioned that the company gained a strong position in blockchain gaming and digital assets under Biden’s harsh crackdown because they had more space to grow while major competitors exited the market.
“A year ago we wouldn’t have considered a US listing,” Siu stated, adding that Trump’s gentle approach on crypto made the US market the biggest and most important financial market.
He believes the company should go public in the US while the conditions are still favorable; otherwise, it would be a “wasted opportunity.”
Trump’s new laws keep attracting more crypto investors like Deribit, the world’s largest crypto options exchange, and Kraken, a popular crypto exchange that Animoca partly owns, who once avoided the country but now see it as the best place to grow.
Animoca rebuilds after delisting and doubles down on crypto gaming
Animoca Brands was delisted from Australia’s stock exchange in 2020 due to concerns about its governance and the legal status of its crypto assets. While this setback raised doubt about the company’s future, it didn’t give up.
Instead, Animoca worked hard to broaden its investments and grow its business in new directions to rebuild its reputation and strengthen its position in the crypto and digital asset industry.
Over time, the company built a major investment portfolio by expanding into advisory services to guide other businesses through digital assets and investing in blockchain and Web3 projects like cryptocurrencies and decentralized applications.
Some of Animoca’s key investments that show its commitment to supporting the growth of blockchain technology and expanding its presence in the industry are OpenSea, the world’s largest marketplace for NFTs; Kraken, one of the largest crypto exchanges in the US, and Consensys, and Ethereum-focused infrastructure firm involved in blockchain development.
Animoca is also doubling down on crypto gaming because it foresees an opportunity to integrate cryptocurrencies and blockchain technology into the gaming industry with upcoming consoles and popular game releases like the highly anticipated Grand Theft Auto 6 paving the way for in-game purchases and crypto-based payments.
The company reported a sharp revenue increase of $314 million in 2023, with its EBITDA (earnings before interest, taxes, depreciation, and amortization) standing at $97 million from an EBITDA of $34 million in 2022. Similarly, the company shows strong financial flexibility with $300 million in cash and stablecoins, plus $538 million in digital assets.
Yat Siu claimed that Animoca is the world’s biggest non-financial service crypto firm, and the company’s plans for an Initial Public Offering (IPO) will further prove its strength as a big player in the crypto and digital asset sectors.
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