Animoca Brands Reports 12% Increase in 2024 Bookings, Driven by DAA Growth

Animoca Brands, a prominent player in blockchain games and Web3 investments, has reported a 12% increase in bookings for 2024, reaching $314 million. This growth is a testament to the company's strategic shift towards diversification, particularly through its Digital Asset Advisory (DAA) business. The DAA segment saw a remarkable 116% increase in bookings, contributing $165 million to the total. This division offers a comprehensive suite of services for Web3 projects, including token advisory, tokenomics, marketing, listing advisory, node operation, and trading support. The success of DAA underscores Animoca Brands' ability to adapt to a complex marketplace and identify new growth areas.

Yat Siu, co-founder and executive chairman of Animoca Brands, attributed the growth to active innovation and the synergistic relationship between the company's expertise and the needs of its portfolio companies. The DAA has provided crucial mentorship to Web3 companies, helping them navigate complex regulations and optimize their token economies. This diversification strategy has been particularly beneficial in a rapidly changing market, where adaptability is key to sustained growth.

Operational efficiency has also played a significant role in Animoca Brands' success. The company reduced its operating expenses by 12%, from $246 million in 2023 to $217 million in 2024. This cost reduction was achieved through optimization initiatives and the effective use of new AI tools. Siu emphasized that this optimization was necessary due to the ever-changing crypto and global markets. The company has shifted its focus from the US market to supporting its portfolio companies, a strategic decision driven by regulatory pressures.

Animoca Brands is integrating AI into multiple aspects of its operations, including investment decisions, gaming development, and cost optimization. Siu noted that the company is even training AI agents using its internal experience and skillsets. This progressive strategy places Animoca Brands at the forefront of innovation within the Web3 domain.

The fourth quarter of 2024 was particularly strong for Animoca Brands, with bookings totaling $108 million, a 167% increase from the same quarter the previous year. This growth was driven by the success of multiple projects, including The Sandbox, Moca Network, Anichess, and Gamee. These projects not only generated significant revenue but also enhanced Animoca Brands' brand awareness and ecosystem growth. The Sandbox, for example, saw over 580,000 unique players participate in its Alpha Season 4, amassing over one million gameplay hours. This engagement highlights the platform's continued relevance and ability to capture a wide demographic.

Animoca Brands continues to invest in and partner with innovative companies in the Web3 space. In 2024, the firm invested in over 70 projects across 20 different sectors, including AI and decentralized finance (DeFi). Notable investments include 0G Labs, Cookie 3, FLock.io, MyShell, and Talus. The company also devoted resources to the AI sector by investing in liquid tokens of its own AI-themed projects and start-ups. As of December 31, 2024, the fair value of the company's private investment holdings was $564 million, including equity and SAFT investments in private companies and Web3 projects.

One of the most notable partnerships is between Moca Network and Square Enix’s Symbiogenesis. This collaboration aims to make it easier for new users to join the Web3 ecosystem, emphasizing accessibility and user experience. Moca Network, built upon the Mocaverse project, offers curated experiences and rewards to users through its digital identifier (DID) Moca ID and products like Mocana, MocaDrop, and MocaList. The partnership with SK Planet, the largest South Korean information and communications technology platform, aims to bring SK Planet’s 28 million verified users to Web3 by incorporating Moca Network’s identity and reputation SDK. MOCA Coin was listed on two of South Korea’s largest digital asset exchanges, Upbit and Bithumb, in December 2024, adding more trading opportunities for MOCA Coin.

Looking ahead to 2025, Animoca Brands is poised for continued growth, driven by strategic diversification, AI adoption, and Web3 investments. Despite potential economic headwinds, Siu highlighted a potentially more crypto-friendly U.S. political landscape as a positive catalyst. Animoca Brands' diverse business model, proactive approach to embracing AI, and forward-thinking investments position the company for success in the ever-changing Web3 landscape.