Animoca Brands’ most recent year-end financial report marks a notable shift in the company’s strategic focus, revealing that its Digital Assets Advisory division has surpassed traditional revenue sources for the first time. The web3 giant reported an impressive revenue generation of $165 million in 2024 from its advisory unit, representing a striking 116% increase year-over-year.
This advisory unit is instrumental in empowering web3 projects, offering a comprehensive suite of services including token advisory, tokenomics, marketing, listing advisory, node operation, and trading services. With this robust expansion, Animoca Brands appears to be laying the groundwork for long-term growth in a rapidly evolving digital landscape.
In contrast, the company generated $110 million in bookings from its traditional web3 business sectors, encompassing gaming and NFTs. Additionally, $39 million was accrued from investment gains and venture management fees. Despite these figures, the current numbers reflect an approximate 40% decline year-over-year from the $182 million reported in the previous year from these traditional domains.
Nonetheless, 2024 seems to have bolstered Animoca’s overall financial health, with the company holding a solid $293 million in cash and stablecoins, alongside $538 million in digital assets. Remarkably, off-balance-sheet token reserves have reached a staggering $2.9 billion, signaling a robust defensive position amidst the volatile market.
The firm’s minority investments have seen a significant increase, totaling $564 million across 540 companies. This represents a 67% rise in cash reserves and a remarkable 165% increase in digital asset holdings. However, it is worth noting that private investment holdings have experienced an 18% drop, declining from $690 million to $564 million due to factors such as token unlocks, equity exits, and asset write-downs that have adversely impacted valuations.
In a bold move reflecting the company’s optimism, Animoca Brands has expanded its physical presence, having opened a large new office in Hong Kong late last year. This expansion stands in stark contrast to the broader trend within the city, where traditional finance firms have been downsizing their operations and reducing headcount as well as workspace.
As Animoca Brands continues to navigate the intricacies of the digital economy, its recent financial report underscores a pivotal transition towards a future where advisory services play a central role in its strategy, positioning the firm to harness the burgeoning potential of the web3 landscape.
