Animoca Brands releases FY2021 annual report
12 June 2025 - Animoca Brands Corporation Limited (“Animoca Brands'' or "the Company”) is pleased to announce the release of the FY2021 annual report, which is now available for download here.
The text of the Chairman’s Letter contained in the FY2021 annual report is reproduced below.
Dear Shareholders and Friends of Animoca Brands,
I am pleased to share the FY2021 annual report for Animoca Brands Corporation Limited (“Animoca Brands” or “the Company”), the completion of which marks a significant milestone toward full compliance with the financial disclosure obligations under the Corporations Act 2001. There are no qualifications to the audit opinion provided by our group auditor, Hall Chadwick, of the FY2021 directors report and consolidation financial statements.
Audit Progress
This report, along with the audit it is based on, addresses complex accounting issues related to our emerging industry, which required an unusually long time to complete and I am deeply grateful for your patience. FY2021 was the first year that Animoca Brands had significant financial results derived primarily from digital assets and blockchain-based business activity, with significant growth in our balance sheet and operating cash flow. Most importantly, I am confident that the completion of FY2021 audited financial statements lays the foundation for more timely completion of the remaining compliance matters outstanding, given that the publication of this report also involved extensive work on the financial statements for subsequent reporting periods.
The significant growth of Animoca Brands that began in 2021 provided validation for our strategy and business model, establishing the Company as one of the most effective digital asset accumulators in the industry – but it also introduced new complexities. Midway through the audit of our FY2021 financial statements we transitioned to Hall Chadwick as our new group auditor; with its expertise and relevant experience in the crypto sector, Hall Chadwick has been instrumental in navigating the new complexities faced by Animoca Brands, and has enabled us to establish a stronger foundation for timely and transparent financial reporting.
Financial Performance
FY2021 was a watershed year for Animoca Brands and our industry as a whole. Many financial metrics for the Company increased by orders of magnitude over FY2020. Net assets grew from negative A$385,000 in FY2020 to A$337 million in FY2021 and bookings for the financial year increased to A$450 million from A$49 million the previous year. Net operating cash inflow increased to A$382 million from net operating cash outflow A$8 million the previous year.
2021 was the year that digital assets, Web3, crypto, and blockchain entered mainstream awareness, even if their significance and importance (particularly in the contexts of digital property rights, network effects, and economic freedom) were not particularly well understood. Since FY2021 the Company has delivered annual unaudited bookings that have been consistently in the hundreds of millions even during some very turbulent times for our industry. This performance reflects not only the scale and resilience of our business but also the immense potential of the ecosystem that we are shaping. At the end of FY2024 the Company had a robust asset base comprising cash/stablecoins, tokens (including Bitcoin, Ethereum, Solana, BNB, and various others), and a portfolio of investments in over 540 companies, some of which are highly prominent in the spaces of Web3, digital assets, blockchain, and AI. Animoca Brands also had a large amount of off-balance-sheet token reserve assets for tokens launched by the Company. In addition to asset growth, the Company also delivered strong top-line bookings (see announcement of 5 March 2025).
It is important to note that the economics of our business frequently diverge from traditional accounting treatments. For example, in FY2021, our Cash Flow Statement reported A$382 million in positive operating cash flow, while the Profit and Loss Statement recorded a net loss of A$671 million due to non-cash accounting charges (see Note 44 to the Consolidated Financial Statements). Accounting standard setters have been slow to address this new industry and the way business is conducted. A similar disparity is observed in other digital frontier companies that report strong bookings and positive cashflow, but significant accounting-based losses because their revenues are recognized over time rather than upfront (a notable example of this is Roblox Corporation). In addition, the Company had several one-time, non-cash accounting charges, namely for derivatives and conversion features attached to convertible notes (totaling over A$231 million), that will reverse and be reported as a gain for FY2022.
Strategy
Since 2021, the fundamentals of our industry have continued to improve despite some serious headwinds, such as the collapse of FTX and Terra Luna in 2022. The current market size of all cryptocurrencies has grown to about US$3.4 trillion, token trading volume averages around US$100-120 billion a day, and NFT sales in the first five months of 2025 averaged nearly half a billion US dollars per month. More than half a billion people around the world now own tokenized digital assets, and that number continues to grow.
Animoca Brands has evolved from a blockchain gaming and metaverse company into a highly regarded operator for digital asset accumulation and tokenization. This asset base and token accumulation strategy have made Animoca Brands one of the most influential companies in the Web3 and digital assets space and a leading proponent of the emerging digital asset industry. Our strategy in growing our digital asset base and revenue is unique in the industry: we not only originate high-value projects but also work with prominent third-party projects as an ecosystem partner, investor, advisor, and publisher.
Our institutional-grade capabilities are a testament to the Company’s adaptability and vision. Today we are collaborating with Standard Chartered Bank and Hong Kong Telecom (HKT) on a Hong Kong Monetary Authority-regulated stablecoin — the first of its kind involving both a private and central bank. We’re also developing proofs of concept with some of the world’s largest sovereign wealth funds, underscoring the growing recognition of digital assets as foundational to the global economy.
In parallel, we have significantly streamlined our operations, reducing operating expenses during 2023 and 2024 while continuing to grow revenues. This disciplined approach ensures we stay agile and focused on delivering value to our stakeholders.
The Future
The global regulatory landscape for digital assets is evolving very positively, particularly in the United States. Recent developments indicate growing clarity in policy and a sentiment shift toward fostering innovation in blockchain and digital assets. This momentum is a promising sign for the future of our industry, as it provides a stronger foundation for institutional adoption and public confidence in crypto and blockchain. It was not very long ago that governments around the world expressed hostility toward our industry.
As governments and regulators worldwide increasingly embrace digital property rights, the potential for blockchain technology to serve as a cornerstone of economic transformation has never been greater. The market cap of cryptocurrencies today is more than double what it was in June 2021, and the industry is starting to be bolstered by institutional flows and adoption, particularly in the rapidly growing tokenized real-world assets sector.
The transformative potential of digital property rights and tokenization is only just beginning to be recognized as the industry nears an inflection point of mass adoption – chances are that you now have various people in your close circle who have exposure to (or perhaps are even directly involved in) digital assets. True digital ownership will be the cornerstone of a new era of economic opportunity for creators, gamers, communities, and anyone operating in the digital economy as users begin to own, control, and benefit from the value that they generate online.
As we look to the future, we remain committed to pushing boundaries, unlocking possibilities, and building a more equitable digital economy. Together with our friends and supporters, we are building not just a company but also a movement to create a better and more equitable future in which Animoca Brands will continue to play a pivotal role.
As I reflect on our humble beginnings since we embarked on our mission to deliver digital property rights to the world, as I note how our once small company has blossomed into a global industry leader, I wish to once again extend my deepest appreciation to all those who made that transformation possible: our shareholders, team, group and portfolio companies, and (of course) our customers and stakeholders.
Sincerely, with gratitude,
Yat Siu
Executive Chairman and Co-Founder
Animoca Brands
12 June 2025