AlphaTON Capital Set to Acquire 51% Stake in Animoca’s GAMEE

AlphaTON Capital is poised to acquire a 51% equity stake in GAMEE, a subsidiary of Animoca Brands, through a non-binding letter of intent. This strategic move aims to enhance Web3 adoption within the Telegram ecosystem, leveraging GAMEE's extensive user base and its blockchain capabilities.

Key Takeaways

AlphaTON Capital intends to acquire a 51% stake in GAMEE, a mobile gaming company under Animoca Brands.
The acquisition includes investments in GAMEE's native tokens GMEE and WAT.
AlphaTON aims to boost Web3 engagement on the Telegram platform with this purchase.
The move could position GAMEE as the first Nasdaq-listed Web3 gaming company.
AlphaTON is transitioning from biotechnology to focus on the TON blockchain ecosystem.

AlphaTON Capital's Strategic Acquisition

AlphaTON Capital, an investment firm focused on the TON treasury, has announced it will acquire a controlling interest in GAMEE, a mobile gaming company fully owned by Animoca Brands. This announcement came on September 30, as the company signed a non-binding letter of intent (LOI) for the acquisition.

The terms of the LOI include both equity and token investments in GAMEE, which operates a highly engaging mobile gaming platform and a Web3 advertising network built on the TON blockchain. With over 119 million registered users, GAMEE has established a strong presence within Telegram's ecosystem.

Goals for Web3 Adoption

The acquisition aligns with AlphaTON’s goals to stimulate Web3 adoption across Telegram, which has a user base of around one billion. By backing highly engaging platforms like GAMEE, AlphaTON aims to enhance user interactions, promote token utility, and foster overall ecosystem growth within the TON blockchain.

Details of the Agreement

Under the LOI, AlphaTON plans to acquire a 51% equity stake in GAMEE, along with 51% of both the GMEE and WAT tokens held in the company’s treasury. Additionally, AlphaTON is set to purchase $3 million worth of GMEE and $1 million worth of WAT in the open market.

The GMEE token serves as the native currency for GAMEE’s gaming ecosystem, facilitating rewards and governance. Conversely, WAT functions as a community-focused token for WatBird, another gaming initiative within the GAMEE ecosystem.

Implications of the Transaction

If finalized, this transaction would mark GAMEE as “the first Nasdaq-listed Web3 gaming company with gaming assets on a major exchange,” noted Yat Siu, executive chairman of Animoca Brands. Brittany Kaiser, CEO of AlphaTON, expressed confidence that GAMEE could significantly contribute to the widespread adoption of open-source and decentralized technologies like TON.

Market Reaction

Following the announcement, AlphaTON's shares dipped nearly 3% on October 1, closing at $5.36. However, they rebounded over 7% in after-hours trading, reaching $5.77, as investor interest surged due to the potential acquisition news.

AlphaTON, which recently transitioned from Portage Biotech Inc. to focus on building a Toncoin treasury, raised $71 million through a private placement and a loan facility with BitGo Prime. This funding is aimed at supporting a $100 million Toncoin treasury and making strategic investments in the TON ecosystem.

On September 25, the company announced it had already invested $30 million into Toncoin, which has positioned it as a significant holder within the network.

Future Development Plans

Looking ahead, AlphaTON aims to support TON-based applications within Telegram’s mini-app ecosystem. The company envisions incubating and developing leading applications, particularly in decentralized finance (DeFi) protocols and gaming platforms built on the TON blockchain.