Animoca Brands Partners with DDC Enterprise for $100 Million BTC Investment

Animoca Brands, a prominent player in the Web3 and gaming sectors, has taken a significant step towards expanding its Bitcoin (BTC) treasury strategy. The company has signed a non-binding memorandum of understanding (MOU) with DDC Enterprise, pledging up to $100 million in BTC to boost DDC's yield strategies. This partnership marks a shift in Animoca Brands' focus, as it moves away from investing in riskier early-stage projects and towards enhancing the value of its existing BTC holdings.

DDC Enterprise, known for its food brand portfolio, aims to achieve positive cash flows while building a substantial BTC treasury. The company has already started accumulating BTC, with a current holding of 138 BTC. DDC's strategy involves retaining its core food business while leveraging BTC as a reserve asset. The company has set an ambitious goal of accumulating 5,000 BTC, positioning itself as a medium-sized corporate holder of the cryptocurrency.

Animoca Brands, which has raised a total of $825.9 million since its inception in 2015, has built a significant crypto portfolio over the years. The company's extensive holdings include both ETH and BTC, although the exact amounts are not specified. Yat Siu, co-founder and executive chairman of Animoca Brands, highlighted the strategic importance of the partnership with DDC, stating that it will enhance the value of their blockchain technologies and maximize the value of their Bitcoin holdings.

The collaboration between Animoca Brands and DDC Enterprise is part of a broader trend among companies pivoting towards BTC as a core reserve asset. DDC's recent $528 million financing package, which includes a $300 million convertible note, $200 million equity line, and a $2 million equity private placement, will support its aggressive accumulation strategy. Yat Siu will join DDC’s Bitcoin Visionary Council, providing guidance on the company’s Bitcoin treasury operations.

This partnership is not the first for Animoca Brands in the realm of BTC treasury management. The company has also invested in DigitalX, an Australian treasury company, with a $20.7 million investment serving as a precursor to its largest deal to date. Despite the volatility in the stock market, DDC's portfolio of brands is on the verge of becoming cash-positive, making for a viable combination of real-world business and a BTC treasury. The company's strategy of mixing financing deals for acquiring BTC, while tapping partners that may have coins on hand for an over-the-counter (OTC) deal, sets it apart from other treasury companies.