Animoca Brands, a Hong Kong-based gaming developer, has raised $110 million from investors, the company said in a statement on Thursday.
It said the company issued convertible notes in a funding round that values it at around $5.6 billion.
The statement said that some existing investors are also contributing to the new investors, including Singapore-based Temasek, global venture capital firm GGV Capital and China-focused asset manager Boyu Capital.
In a statement, Animoca Brands co- founder Yat Siu said that the special round of fundraising will include strategic advice and perspective. In order to build its vision of a metaverse based around blockchain technology, Animoca Brands invested in more than 340 companies, in which users can buy and trade digital assets in the form of non-fungible token NFTs NFTs surged last year as speculators started to pile in to digital assets and the metaverse became a tech buzzword. Sales volumes have dropped sharply in the last few months as investors have become more risk-averse, the price of cryptocurrencies has fallen and the much- hyped metaverse hasn't shown signs of materialising.
A spokesman for Animoca Brands played down the impact of the winter industry lingo on a spell of depressed prices, which has wiped out around $1 trillion off the criptocurrency market this year, according to CoinGecko data.
The statement said that the raised funds will be used to make more acquisitions and investments, as well as product development and secure intellectual property licenses.
We take a long-term view, and we note thatBlockchain gaming has been relatively less affected by the chill than some other sectors, the spokesperson said.
According to market trackerCryptoSlam, Axie Infinity, backed by Animoca Brands, has seen a decline in monthly sales volume, buyer numbers and average sale prices since January.
Animoca Brands raised $75 million in July and $360 million in January.