Animoca-Currenc Merger Aims to Usher in New Digital Asset Class

Animoca Brands, a leading player in the digital asset ecosystem, has entered into a non-binding term sheet with Nasdaq-listed Currenc Group (CURR) to pursue a proposed reverse merger that would create the world's first publicly-traded digital assets conglomerate. The proposed transaction, expected to close in 2026, would see Animoca shareholders own approximately 95% of the combined entity, while Currenc shareholders retain about 5%. The merger aims to expand Animoca's investor base and provide a Nasdaq listing to its growing digital assets portfolio, including real-world asset (RWA) tokenization, blockchain infrastructure, and a treasury of major cryptocurrencies like BTC, ETH, and SOL.

The deal underscores a strategic shift for both companies. Animoca Brands, known for its investments in over 600 Web3 and digital asset firms, has seen its Digital Assets Advisory unit surge to $165 million in 2024 revenue—a 116% increase from 2023—outpacing its traditional Web3 gaming and NFT business, which reported a 40% revenue decline to $110 million. Meanwhile, Currenc Group, a fintech firm specializing in AI-driven financial solutions, plans to spin off its AI and remittance operations to current shareholders prior to the merger, focusing the combined entity on digital assets.

The merger has already driven investor enthusiasm. Shares of CURR, which recently traded at $3.78, have surged 118% in the past five days. The stock's performance follows a broader trend of reduced short interest—down 39.4% in October—as analysts revise their outlook. Zacks Research upgraded CURR from "strong sell" to "hold," while the stock now carries an average price target of $3.50, according to a short interest update. Animoca's Co-Founder and Executive Chairman, Yat Siu, highlighted the transaction's potential to "usher in a new asset class" by consolidating DeFi, NFTs, gaming, and DeSci under a single Nasdaq-listed entity.

Currenc CEO Alex Kong emphasized the merger's value proposition, stating it would "unlock significant shareholder value" by aligning with a global leader in the trillion-dollar digital economy. The combined entity's dual-class share structure and board composition, featuring nominees from both companies, aim to balance governance and growth objectives.

The proposed merger remains subject to due diligence, shareholder approvals, and regulatory clearances. Both firms have agreed to a three-month exclusivity period to finalize terms.