Crypto 1, a firm with roots in Silicon Valley and the United Arab Emirates, is actively exploring opportunities within the Australian market through its C1 Fund. This $500 million fund is strategically targeting key players in the crypto industry, eyeing companies like Animoca Brands, a blockchain gaming business, and Chainalysis, a data analysis firm.
As reported by The Australian Financial Review, the C1 Fund is focused on acquiring secondary shares at significant markdowns. Engaging with local venture firms, it’s seeking to buy private holdings at discounts ranging from 50% to 80% off their previous valuations. The fund’s main targets are companies with a minimum last-round valuation of $300 million, particularly those at the Series C funding stage or beyond. It’s looking to invest anywhere between $20 million to $50 million. The fund pitches the allure of attractive valuations in the secondary market due to prevailing market conditions, hyperinflation, and the surge in interest rates.
Among the fund’s interests is Animoca Brands, previously listed on the Australian Securities Exchange. After delisting in 2020 due to governance breaches and deep involvement in crypto activities, Animoca Brands, now valued at $5.9 billion, attracts attention from the C1 Fund. The fund aims to acquire shares at a substantial discount, around $0.73 each, representing a 75% reduction from its last capital raise price.
Additionally, Chainalysis, a company specializing in blockchain analysis, is on the C1 Fund’s radar. Valued at $8.6 billion in 2022, Chainalysis reportedly offers around $30 million worth of shares on the secondary market at a discounted price of $15, marking a 65% reduction.
