according to materials from the site - By Cryptopolitan_News
Animoca Brands has partnered with DDC Enterprise to invest $100 million in expanding its BTC treasury. With this move, Animoca Brands is shifting its focus from Web3 startups and games, aiming to reclaim some of its assets in BTC.
To date, Animoca Brands has raised $825.9 million, which has been directed towards both its own games and startups. The company began fundraising in 2015 and continued to do so during several bull markets, accumulating a significant amount of assets in ETH and BTC. The exact amounts of BTC assets are not disclosed, but the company has an extensive crypto portfolio built up over the years.
"Our partnership with DDC allows Animoca Brands to enhance the value of our blockchain technologies and maximize the value of our Bitcoin assets," added Yat Siu, co-founder and executive chairman of Animoca Brands.
Animoca Brands joined the trend of investing in BTC after a slowdown in venture investments in riskier early-stage projects.
Animoca Brands provides consulting on BTC yield strategies.
DDC Enterprise Limited (DDC) signed a non-binding memorandum of understanding with Animoca Brands. The fund will help DDC develop and implement a yield strategy for its current BTC treasury.
Animoca Brands will provide support and allocate up to $100 million in BTC for yield-boosting strategies implemented by DDC. This move will accelerate DDC's accumulation strategy in addition to a recent funding package of $528 million. The raised funds are distributed among PIPE, $300 million in convertible bonds, a $200 million equity investment line, and a $2 million private placement.
Yat Siu, co-founder and executive chairman of Animoca Brands, will join the DDC Bitcoin Visionary Council, where he will oversee the company's Bitcoin treasury operations.
DDC has a relatively small treasury of 138 BTC, which was launched in May of this year. The company's BTC treasury is part of the latest wave of companies transitioning to BTC and planning larger purchases using credit lines.
Animoca Brands is also collaborating with DigitalX, an Australian treasury company. The fund invested a total of $20.7 million in DigitalX, which marked the precursor to its largest deal to date.
DDC shares are trading near a six-month high.
DDC is one of the companies whose treasury shares have benefitted from Bitcoin purchases in the short term. The shares are trading near their highest value since the beginning of the year, recovering to $11.
However, DDC is still far from its peak in November 2023, when shares were trading above $155.
Unlike other companies whose treasury shares, DDC will continue to expand its food business while maintaining BTC as its primary reserve asset. DDC has promised to pursue an aggressive accumulation strategy while maintaining a portfolio of food brands.
Despite the decline in share prices, DDC's brand portfolio is close to positive cash flow, making it a viable combination of real business and BTC treasury. Previously, DDC had announced its intention to form a treasury of 5000 BTC, becoming a mid-tier corporate holder. The company was one of the first to begin combining acquisition financing deals for BTC while simultaneously attracting a partner who might have coins available for over-the-counter transactions.
