Animoca Brands Publishes Un audited Financial Results, Showing Substantial Growth and Shifting Strategy

Animoca Brands, a leading player in blockchain games and Web3 investments, has published its unaudited financial results for 2024, showing substantial growth and shifting its strategy.

Animoca Brands, a leading blockchain game and Web3 investment firm, has published its unaudited financial results for 2024, showcasing substantial growth and a shifting strategy. Bookings increased 12% year over year to $314 million, up from $280 million in 2023, the report notes. The uptick is a clear indication of Animoca Brands’ determination to double down its focus on – and security in – a changing digital economy, expanding its focus from gaming and NFT sales to include digital asset advisory services.

This success is further illuminated by the lucrative performance of Animoca Brands’ Digital Asset Advisory (DAA) business, which continues to perform of late with a massive 116% increase in bookings, bringing in a total of $165 million. DAA offers a full-service suite for Web3 projects, including token advisory, tokenomics, marketing, listing advisory, node operation, and trading support, the company said. Indeed, this expanded focus is a smart response to an increasingly complex marketplace and provides fresh areas for growth.

Yat Siu, co-founder and executive chairman of Animoca Brands, emphasized that the soaring growth numbers also demonstrate how much of this can be attributed to active innovation. “The DAA is a practical demonstration of the benefits and power of Web3’s shared network effect,” Siu said, referring to the synergistic relationship between Animoca Brands’ expertise and the requirements of its portfolio companies.

For example, to demonstrate this change, let’s think of a real-life example. In the year of 2023, many Web3 companies had difficulties dealing with complex regulations and trying to play the game of token economy well. The DAA of Animoca Brands enabled these companies to access the type of mentorship that would ultimately lead to increased adoption of both the company assets and Animoca brands as well. This highlights the need for diversification in a fast changing market.

Optimization and AI: A New Era for Product Integration

Operational efficiency has improved which means creating revenue more effectively by optimizing resource management. Operating costs fell 12%, from $246 million in 2023 to $217 million in 2024. This significant cost reduction is the result of optimization initiatives that began in Q2 2023, combined with effective use of new AI tools.

According to Siu, such optimization was a must, driven by the ever-changing crypto and global markets. It has since reduced its emphasis on the US market and shifted to supporting its portfolio companies, he said, adding that the move was a “strategic” decision as regulators were more focused on companies over recent months.

Animoca Brands will adopt AI in multiple aspects of its operations, including investment decisions, gaming development, and cost optimization. Indeed, Siu said the company is even “training AI agents using the experience and skillsets” it has amassed internally. Animoca Brands’ progressive strategy of integrating AI places them at the vanguard of innovation within the Web3 domain.

Q4 2024 Highlights: A Year-Ending Strong

Bookings for the fourth quarter of 2024 were especially bright for Animoca Brands, totaling $108 million, a significant 167% increase from $40 million in the same quarter the previous year. Bookings jumped with strong performance across its different business segments, including digital asset advisory ($57 million), Web3 operating businesses ($37 million) and investment management ($14 million).

The solid Q4 results were driven by the success of multiple projects such as The Sandbox, Moca Network, Anichess, and Gamee. These projects have delivered not just significant revenue, but also contributed to Animoca Brands’ brand awareness and ecosystem growth.

In fact, over 580,000 unique players took part in The Sandbox’s Alpha Season 4 alone, amassing over one million gameplay hours. Such engagement is a testament to the platform’s continued relevance and ability to capture the attention of a wide demographic. Animoca Brands acquired The Sandbox in 2018 and has since become one of the company’s primary game operating businesses. The majority of The Sandbox’s top-line bookings are from SAND token sales and NFT sales.

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Developing Allies and Investors: Building the Ecosystem

Animoca Brands also continues to invest in and partner with other innovative companies in web3. The firm invested in over 70 projects across 20 different sectors in 2024, including AI and decentralized finance (DeFi) sectors and infrastructure projects.

Some of their notable investments are 0G Labs, Cookie 3, FLock. io, MyShell, and Talus. In 202