LONDON: Hong Kong-based blockchain gaming developer Animoca Brands has raised $110 million from investors, the company said in a statement on Thursday.
The company issued convertible notes in a funding round that is valued at approximately $5.6 billion.
The new investors include Singapore-based Temasek, global venture capital firm GGV Capital and China-focused asset manager Boyu Capital, with some existing investors also contributing, the statement said.
“Our new investors will contribute strategic advice and perspective,” Animoca Brands co-founder Yat Siu said in a statement, describing it as a “special strategic round of fundraising.”
Animoca Brands has invested in over 340 companies to build its vision of a blockchain technology-based “metaverse” in which users can buy and trade digital assets in the form of non-fungible tokens (NFTs).
NFTs soared last year as speculators piled into digital assets and the metaverse became a tech buzzword. But sales volumes have fallen sharply in recent months as investors turn away from more risk, cryptocurrency prices have plummeted and the much-hyped metaverse is showing some signs of materializing.
According to data from CoinGecko, a spokesperson for Animoca Brands has downplayed the impact of a “crypto winter” – the industry’s lingua franca for plunging prices – that wiped nearly $1 trillion off the cryptocurrency market this year.
The money raised will be used to fund more acquisitions and investments, as well as to secure product development and intellectual property licenses, the statement said.
“We take a long-term view, and also note that blockchain gaming has been relatively less affected by the cold than some other sectors,” the spokesperson elaborated.
According to market tracker CryptoSlam, top blockchain game Axi Infinity, which is backed by Animoca Brands, has seen a sharp drop in monthly sales volume, buyer numbers and average selling prices since January.
Animoca Brands raised $75 million in July and $360 million in January.