NEOM to Invest $50 Million in Animoca Brands for Web3 Development
Written with artificial intelligence.
Saudi Arabia's NEOM initiative plans to invest $50 million in Animoca Brands to foster Web3 services aligned with the country's Vision 2030 strategy. The investment will be split between convertible notes and shares from the secondary market.
NEOM's Investment in Web3 Gaming
Saudi Arabia's NEOM initiative is set to invest $50 million in Animoca Brands, a key player in Web3 gaming and investment. This collaboration aims to enhance technological growth in Riyadh and the NEOM economic zone, aligning with the Saudi Vision 2030 strategy.
The investment will be divided equally, with $25 million coming through convertible notes at a capped conversion price of $4.50 AUD per share, while the remaining $25 million will be used to acquire shares from the secondary market. Although Animoca was previously listed on the Australian Securities Exchange (ASX), it was delisted in 2020 due to compliance issues but continues to trade in the secondary market.
Animoca Brands is expected to focus on developing global Web3 business services, although specific projects have not yet been disclosed as they are still in the planning phase. Yat Siu, the executive chairman of Animoca, expressed enthusiasm about the partnership, suggesting that NEOM could become a leader in utilizing blockchain technology.
NEOM represents an ambitious vision for a new international city focused on innovation and sustainable development, aiming to diversify Saudi Arabia's economy beyond oil dependence. This investment in Web3 initiatives reflects NEOM's commitment to being at the forefront of technological advancement.
Saudi Arabia has previously invested in around 40 U.S. venture capital firms linked to crypto and blockchain, with its sovereign wealth entity, Sanabil, allocating approximately $2 billion annually to support innovative business models.