Amid the growing bullish trend in cryptocurrency markets, the C1 Secondaries Fund, with assets valued at $500 million, recently expressed its interest in making substantial strategic investments in companies belonging to the digital assets space.
According to reports from the Australian Financial Review, this fund based in Silicon Valley and the United Arab Emirates is exploring opportunities to invest in companies such as Animoca Brands and Chainalysis, taking advantage of substantial discounts of up to 80% in the valuations of these companies.
C1 Secondaries Fund Wants a Stake in Animoca Brands and Chainalysis
The strategy of the C1 Secondaries Fund involves disbursing significant checks, ranging from $20 to $50 million each, with the aim of acquiring private stakes in blockchain companies that have received valuations above $300 million in their most recent funding rounds. Animoca Brands, for example, had sold its shares at around $4.50 in its last fundraising, but the C1 Fund, co-founded by a former Coinbase executive, proposes to acquire them at a significantly reduced price of approximately $1.12, marking a difference of 75%.
Similarly, the fund also has its sights on Chainalysis, offering to buy its shares at a 63% discount compared to its last funding round. These aggressive offers come in a context of optimism in cryptocurrency markets, with Bitcoin surpassing the $42,000 mark in the first week of December and the total market capitalization of cryptocurrencies exceeding $1.6 trillion.
Beyond crypto assets, non-fungible tokens (NFTs) also experienced a significant boom. According to a report from DappRadar, NFT trading volume reached almost $1 billion in November, indicating a shift in user behavior. During the same period, the average value of NFT transactions increased significantly, rising from $126 to $270.
The C1 Secondaries Fund aims to capitalize on the bullish momentum in the markets by making strategic investments in key companies in the digital assets space. It remains to be seen whether these offers and potential negotiations come to fruition for both parties.