Shares of Animoca Brands, a private company, are being traded on secondary markets at valuations that vary between US$1.5 billion to US$3 billion, co-founder and chairman Yat Siu told the Post.
The latest figures, first reported by cryptocurrency-focused outlet DL News last week, mean that Animoca’s shares are changing hands at times for a quarter of what the company was worth two years ago.
But such trades do not reliably reflect the company’s valuation, as there is “seldom substantial liquidity” in over-the-counter secondary markets, Siu said.
“Currently the company is unlisted, meaning our shares are not traded on an exchange but only traded on secondary markets across multiple locations, agents, and brokers, with relatively little volume and reporting,” Siu said. “This makes it challenging to track reliable information about our valuation.”
He added that the company’s valuation would be more accurately reflected if it were publicly listed.
Animoca’s bookings in the first three months of 2024 jumped 72 per cent to US$90 million, up from US$52 million in the same period last year. Its cash and stablecoin balance also increased to US$291 million at the end of March, according to the firm’s unaudited financial statement. It has reversed the momentum from last year, when bookings fell 30 per cent year on year to US$280 million and its cash and stablecoin balance declined by nearly 10 per cent to US$175 million.
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