Animoca Brands: The Web3 company that got away from the ASX, and our loss is the Nasdaq’s gain

Who would’ve thought that more than 5 years after Animoca Brands was unceremoniously dumped from the ASX, it is listing on the NASAQ for several billion (US$9bn to be exact) in a reverse merger with US-listed fintech Currenc Group.

Even though the company is a better business than it is now, it was then and is still now a poster child some use to argue the ASX is out of date in its acceptance of Web 3.0 technologies.

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Animoca Brands’ stint on the ASX was unsuccessful

Animoca was co-founded in 2014 (in Hong Kong) by Yat Siu (and others) and originally focused on mobile gaming. It listed on the ASX a year later, and (as is typical of many microcap companies) listed via a reverse takeover of a shell company.

In roughly 5 years, specifically on March 9 2020, it was dumped. The business model was shifting into blockchain gaming and NFTs (non-fungible tokens), which were novel and posed challenges for the ASX’s standard listing rules and investor protections at that time.

The ASX listed a public letter a few months prior highlighting concerns about Animoca’s “resources, systems and controls to meet its obligations under listing rules”.

But the feeling was mutual. In Animoca’s own letter to shareholders on 9 March 2020, it stated that delisting would allow the company to “focus on building the business … in an environment that is more welcoming to activities that involve virtual asset ownership through blockchain and non-fungible tokens (NFTs).

A successful rebuild

After delisting, Animoca operated as an unlisted public company (shares could still be held, traded privately) and focused on growth in Web3, blockchain gaming and digital-asset investments. But many stocks that become an ‘unlisted public company’ are never heard of again.

This was not the case with Animoca. It broadened its business beyond games into digital-asset advisories, tokenisation, NFTs, and large stakes in the Web3 ecosystem. As part of this, it made a number of acquisitions and investments. It has stakes in more than 620 firms including crypto exchange Kraken. In 2024, it recorded US$314m in annual revenue and it has nearly $300m in cash and crypto.

It occured at an opportune time, as investors became more aware of digital assets. The Second Trump administrations favourability towards digital assets has helped matters too. Trump hired Paul Atkins as the boss of the SEC, one favourable to digital assets. Atkins launched ‘Project Crypto’ which is aimed at overhauling securities laws to accomodate digital assets.

Relaunching on the Nasdaq

Animoca is now worth over US$9bn and is now listing on the NASDAQ via a reverse takeover from Currenc. This is still relevant in Australia because some may still hold shares and will get bought out.

Of course, Animoca is not listing on the ASX but on the NASDAQ. This offers access to large, liquid markets, institutional investors, greater visibility and less hostility to its business model.

Animoca leadership has cited the U.S. regulatory and market environment for crypto/digital assets as becoming more favourable and appropriate for their business.

Because Animoca’s core business is Web3, NFTs, digital ownership, and digital assets, listing in a market that is more crypto-friendly (or willing to handle digital asset business) makes strategic sense.

Conclusion: The one that got away

Whether or not you agree with investing in Web 3.0 assets and if they have any place on the ASX, it is embarassing to see a company go to such heights as Animoca has reached.

To be fair, there was little reason to suspect it wouldn’t just disappear as many delisted companies do. But Animoca has done something others have not and that is bounce back greater than ever.