Animoca Brands, a prominent player in the Web3 space, has reported a significant pivot in its business strategy, with its Digital Asset Advisory division surpassing its traditional Web3 revenue sources. The company’s recent financial report reveals that the advisory unit generated $165 million in 2024, marking a 116% increase year-over-year.
The Digital Asset Advisory division provides crucial services for Web3 projects, including token advisory, tokenomics, marketing, listing advisory, node operation, and trading services. These offerings have proven highly lucrative, reflecting a growing demand for guidance in navigating the complex and fast-evolving digital asset landscape. With $165 million in revenue from this unit, Animoca Brands is positioning itself as a key player in the broader Web3 ecosystem, especially as businesses seek expertise to scale their digital offerings.
In contrast, Animoca’s traditional Web3 business, which includes gaming and NFTs, saw a decline in revenue, dropping by approximately 40% year-over-year to $110 million in bookings. Despite this downturn, the company still reported $39 million in investment gains and venture management fees.
Animoca Brands Strengthens Financial Position
Despite the drop in revenue from gaming and NFTs, Animoca Brands has significantly bolstered its financial standing in 2024, as evidenced by its robust balance sheet and impressive growth in reserves. The company reported holding $293 million in cash and stablecoins, $538 million in digital assets, and an eye-popping $2.9 billion in off-balance-sheet token reserves.
The increase in token reserves, which rose by a substantial 165%, highlights Animoca’s expanding influence and commitment to the Web3 ecosystem. In addition to its cash and digital asset holdings, Animoca’s strategic investments now span 540 companies, a 67% increase from previous years. However, despite the overall rise in reserves, Animoca’s private investment portfolio saw a decline of 18%, dropping from $690 million to $564 million. This decrease was largely attributed to token unlocks, equity exits, and asset write-downs, which impacted valuations.
Despite broader trends in traditional finance, Animoca Brands has continued to expand its global presence. Late in 2024, the company opened a large new office in Hong Kong, positioning itself strategically in a region where many financial firms are downsizing and reducing headcount. This expansion signals Animoca’s confidence in the future of the Web3 sector and its commitment to maintaining a strong foothold in key global markets.
Industry Trends and Market Shift
This shift from a reliance on gaming and NFTs to a focus on advisory services reflects broader trends in the Web3 and crypto sectors. As the market matures and becomes more complex, companies are increasingly looking for advisory firms that can help them navigate token offerings, market dynamics, and regulatory concerns.
One of the most notable projects that Animoca’s DAA division supported was the launch of the PENGU token by the popular NFT brand Pudgy Penguin. After teasing the token for nearly two weeks, the project officially launched on December 17, 2024. PENGU has a total supply of 88.8 billion tokens, with nearly 26% allocated to the community.
Quick Facts:
- Animoca’s advisory division generated $165 million in 2024, a 116% increase from 2023.
- The company’s traditional Web3 business saw a 40% drop in revenue.
- Animoca holds $293 million in cash, $538 million in digital assets, and $2.9 billion in token reserves.
