Investment Opportunity in the Crypto Space
C1 Secondaries Fund, a prominent Silicon Valley and UAE-based fund with assets worth $500 million, is considering investing in crypto companies, including Animoca Brands and Chainalysis. The fund aims to capitalize on the bullish momentum in the crypto markets, according to a report in the Australian Financial Review.
Big Cheques for Crypto Firms
C1 Fund is ready to write impressive cheques ranging from $20 million to $50 million to acquire private holdings in crypto companies. Their target is firms with a valuation of $300 million and above in their last funding round. This move reflects the fund's confidence in the long-term potential of the crypto industry.
Attractive Discounts on Shares
Animoca Brands and Chainalysis are among the companies that have caught the attention of C1 Fund. The fund is offering to buy Animoca Brands shares at a significant discount of 75% compared to its most recent valuation. Similarly, it aims to purchase Chainalysis shares at a discount of 63% compared to its last capital raise.
Market Uptick in the Crypto Space
The fund's interest in acquiring stocks in these crypto companies comes on the back of a recent market uptick in the crypto space. Bitcoin (BTC) surpassed the $40,000 price point in early December, leading to the entire crypto market capitalization surpassing $1.6 trillion. Currently, Bitcoin is hovering just under $42,000.
The Rise of Nonfungible Tokens (NFTs)
In addition to crypto assets, nonfungible tokens (NFTs) have also experienced a surge in market activity. A report by DappRadar revealed that NFT trading volume reached nearly $1 billion in November, indicating a shift in user behavior. The average value of NFT transactions also increased from $126 to $270 during the same period.
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