Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis

UTC by Chimamanda U. Martha · 3 min read
Crypto VC Firm C1 Explores Acquisitions in Australia, Targets Animoca Brands and Chainalysis
Photo: Depositphotos

Australia’s recent regulatory developments in the crypto space coincide with C1’s endeavor to acquire private holdings in the country.

Crypto venture capital firm C1 is making strategic moves to acquire private holdings in Australia’s crypto market, according to reports from local media, Australian Financial Review, citing a Pitch Deck seen by the company.

The firm, founded by former Coinbase executives, plans to utilize its $500 million fund to purchase secondary shares from prominent companies and local ventures, preferably those with a minimum valuation of $300 million from series C funding rounds.

C1 Eyes Animoca Brands and Chainalysis for Acquisitions

According to the report, the company has set its sights on Animoca Brands and Chainalysis for potential acquisitions, offering investors discounts ranging between 50% and 80% on their last valuation. The firm is ready to write checks ranging from $20 million to $50 million.

Animoca Brands, once listed on the ASX, has transformed into a $7.8 billion private entity since its exit, drawing interest from C1, which is offering to purchase shares at a significant discount. Similarly, Chainalysis, valued at $8.4 billion in 2022, has about $30 million of secondary preferred shares available at a discounted price, according to C1.

The move comes as the crypto market is experiencing a resurgence, fueled by optimistic sentiments around Bitcoin’s (BTC) value surpassing $44,000 for the first time in two years. Anticipation of US regulators approving a BTC spot ETF in January and a technical upgrade to the Bitcoin network in May adds to the positive outlook, attracting attention from institutional players like C1.

The company believes the crypto industry presents highly appealing valuations in the secondary market, given the prevailing market conditions in both the public and private sectors.

“Due to current market conditions in the public and private markets, hyperinflation, and rising interest rates, we believe the digital assets market offers very attractive valuations in the secondary market,” the desk reads.

Despite reports suggesting C1’s planned acquisitions, Dr. Najam Kidwai, a senior executive at C1, has refuted the claims, noting that the venture capital firm has not met any of the companies for potential acquisitions.

“C1 did not authorize this article, and we have not met with either company directly as of this time,” Kidwai said.

Australian Government Adopts New Measures to Regulate Crypto

Australia’s recent regulatory developments in the crypto space coincide with C1’s endeavor to acquire private holdings in the country. In response to the FTX collapse last year, the government has implemented new measures to safeguard consumer interests.

These include a proposed regulatory regime, with an estimated timeline stretching to 2025 for Australian digital asset platforms to obtain operational licenses. Additionally, tax guidelines have been revised to extend capital gains tax to wrapped tokens.

Moreover, authorities have affirmed their decision to defer the introduction of a central bank digital currency (CBDC) for several more years. These regulatory initiatives reflect the government’s commitment to addressing challenges and ensuring a secure and regulated environment for crypto activities in Australia.

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