Animoca Brands Sees Shift in Revenue Streams as Advisory Services Surpass Web3 Business

The latest financial report from Animoca Brands reveals a notable change in the company's revenue streams, with its Digital Assets Advisory emerging as the primary source of income. This division, which provides services such as token advisory, tokenomics, and marketing to web3 projects, generated $165 million in 2024, marking a 116% year-over-year increase. In contrast, the company's traditional web3 business, encompassing gaming and NFTs, saw a 40% decline in revenue to $110 million. Additionally, Animoca reported $39 million in investment gains and venture management fees. The company's balance sheet appears stronger, with $293 million in cash and stablecoins, $538 million in digital assets, and $2.9 billion in off-balance-sheet token reserves. Its minority investments have increased to $564 million across 540 companies, representing a 67% rise in cash reserves and a 165% growth in digital asset holdings. However, the value of private investment holdings decreased by 18% due to factors such as token unlocks and asset write-downs.