Animoca Brands, DDC Enterprise take first steps toward $100M BTC treasury plan

Animoca Brands is expanding its role as a Web3 and gaming fund, recently joining DDC Enterprise in a bid to expand its BTC treasury. The VC fund and gaming startup will contribute up to $100M for its treasury strategy. 

Anomica Brands struck a partnership with DDC Enterprise, with the goal of injecting $100M for BTC treasury expansion. With this move, Animoca Brands shifts its attention from Web3 startups and games, aiming to allocate a part of its assets back to BTC. 

So far, Animoca Brands has raised $825.9M, which have been used for its own games, as well as for startups. The company started its fundraising efforts in 2015, and continued through several bull markets, building up a significant ETH and BTC treasury. The exact BTC holdings are not specified, but the company has an extensive crypto portfolio, accrued over the years. 

“Our partnership with DDC enables Animoca Brands to enhance the value of our blockchain technologies and maximize the value of our Bitcoin holdings,” added Yat Siu, co-founder and executive chairman of Animoca Brands.

Animoca Brands joined the BTC treasury trend after slowing down its VC investments into riskier early-stage projects. 

Animoca Brands to advice on BTC yield strategies

DDC Enterprise Limited (DDC) signed a non-binding memorandum of understanding with Animoca Brands. The fund will help DDC to develop and implement yield strategy for the current BTC treasury. 

Animoca Brands will extend help and allocate up to $100M in BTC toward yield enhancement strategies operated by DDC. The move will accelerate the DDC accumulation strategy, in addition to its recent $528M financing package. The fundraising is split between PIPE raises, a $300M convertible note, $200M equity line, and a $2M equity private placement. 

Yat Siu, the co-founder and executive chairman of Animoca Brands, will join DDC’s Bitcoin Visionary Council, providing guidance on the company’s Bitcoin treasury operations. 

DDC has a relatively small treasury of 138 BTC, starting out in May this year. The company’s BTC treasury is part of the latest wave of companies pivoting into BTC and planning larger purchases with the help of credit facilities. 

Animoca Brands is also involved with DigitalX, an Australian treasury company. The fund invested just $20.7M into DigitalX, as a precursor to its largest deal to date.

DDC trades near a six-month high

DDC is one of the treasury companies that benefitted from its BTC purchases in the short term. The stock is trading near its highest level for the year to date period, recovering to $11. 

However, DDC is still far from its peak from November 2023, when the stock traded above $155. 

Unlike other treasury companies, DDC will continue expanding its food business, retaining BTC as its core reserve asset. DDC has promised an aggressive accumulation strategy, while still retaining a portfolio of food brands. 

Despite the sliding stock price, the DDC portfolio of brands is on the verge of being cash-positive, making for a viable combination of real-world business and a BTC treasury. Previously, DDC has stated it intends to build a treasury of 5,000 BTC, turning into a medium-sized corporate holder. The company is one of the first to mix financing deals for acquiring BTC, while tapping a partner that may have coins on hand for an OTC deal.

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