Animoca Brands Shifts Focus in 2024, Reporting $314M in Bookings Amid Web3 Pivot
In a significa
nt development, Animoca Brands has reported a 12% increase in bookings for 2024, reaching $314 million, up from $280 million in 2023. This positive growth comes despite a noticeable shift in the company’s core focus. Under the leadership of Yat Siu, Animoca Brands pivoted away from its heavy reliance on gaming and NFT sales, moving towards more advisory services within the Web3 space.
Advisory Unit Surpasses Traditional Revenue Sources
One of the standout figures from Animoca Brands’ year-end financial report was the 116% year-over-year increase in the company’s advisory unit, which generated $165 million in 2024. This growth reflects a strategic pivot that saw Animoca’s advisory services—providing Web3 projects with crucial token advisory, marketing, tokenomics, listing advisory, and node operation—overtake its traditional focus on gaming and NFT-related revenue.
The company’s shift towards advising Web3 projects proved fruitful, contributing significantly to its overall performance. In contrast, its web3 business, which includes its gaming and NFT sales, experienced a 40% drop year-over-year, with the unit bringing in $110 million in bookings, down from $182 million the previous year.
Strong Balance Sheet Despite Changes in Investment Holdings
While Animoca experienced a dip in private investment holdings, the company still managed to strengthen its balance sheet in 2024. It ended the year with $293 million in cash and stablecoins, $538 million in digital assets, and $2.9 billion in off-balance-sheet token reserves.
The company’s minority investments, which include stakes in 540 companies, totaled $564 million, reflecting a 67% increase in cash reserves and a 165% rise in digital asset holdings. However, Animoca’s private investment holdings did see an 18% drop, falling from $690 million to $564 million, primarily due to token unlocks, equity exits, and asset write-downs that affected valuations.
“This pivot to advisory services and our strengthened balance sheet positions us well for long-term growth,” said Yat Siu, co-founder and executive chairman of Animoca Brands.
New Office and Resilient Expansion in Hong Kong
Despite broader challenges in the region, Animoca Brands bucked the trend by expanding its physical presence. The company opened a large new office in Hong Kong, a city where many traditional finance firms have been downsizing and reducing their office space. This bold move signals Animoca’s commitment to the region and its ongoing plans to expand its Web3 presence.
Looking Ahead: Strategic Shift and Future Prospects
As Animoca Brands continues to evolve, its focus on Web3 advisory services is likely to be a major contributor to its future growth. The shift away from direct reliance on gaming and NFTs toward a broader Web3 strategy may allow the company to tap into new revenue streams while diversifying its business model.
With a strong financial foundation and an increasing presence in the Web3 ecosystem, Animoca is well-positioned to continue driving innovation and offering strategic insights to Web3 projects globally. As the Web3 market matures, Animoca’s ability to offer trusted advisory services could prove to be a game-changer for both the company and its clients in the space.
Final Thoughts: The Future of Animoca Brands
Animoca Brands’ strategic pivot to focus more on advisory services and less on direct gaming and NFT sales marks a significant evolution for the company. Despite the shift, Animoca remains financially healthy and continues to expand its role in the growing Web3 ecosystem. With strong investments and a commitment to innovation, Animoca Brands is likely to remain a key player in the Web3 and digital assets space for years to come.
