NFT Investments to Acquire Pluto Digital in a $130 Million Deal
In a recent statement, NFT Investments revealed its intention to acquire Pluto Digital PLC, a crypto technology and venture company.
What’s the Announcement?
NFT Investments is an incubator specializing in the market for non-fungible tokens while Pluto Digital PLC (“Pluto”) is a crypto technology and venture company. The two firms entered into a non-binding letter of intent (LOI) for the acquisition for consideration of £96 million or $130 Million.
That said, the acquisition is set to create a significant global metaverse company and advance NFT Investments’ reach in the NFT sector as the Pluto Ventures division has invested heavily in NFTs and NFT gaming.
The acquisition will be a reverse takeover of NFT Investments and will result in Pluto shareholders holding 70.5% of the enlarged business on completion. Concerning the recent deal, Jonathan Bixby, Executive Chairman of NFT Investments, said:
“We are very excited about the prospects of Pluto and NFT merging to create a large global metaverse company. This is a transformational deal that will provide us with the scale to expand and diversify our investment portfolio in a rapidly growing sector and thereby create long-term value for shareholders.”
In terms of making strides in the NFT and Metaverse space, Pluto has been working alongside Maze Theory to release high-quality games that incorporate token economics. Over the last year, Pluto Digital established Pluto V, a venture capital arm that has made investments in various Web 3 projects and NFT assets. In March 2021, the firm raised a $40 million fund attracting London-listed bitcoin miner Argo Blockchain as its lead investor.
The Growing NFT Space
Over the last year, the boom in the NFT and Metaverse space has led to investors and organizations flocking to monetize in this growing market. Blockchain games or Play2Earn games have created substantial value led by projects such as Axie Infinite, Decentraland, and The Sandbox.
While the NFT market is still in its nascent stages it has had its best year on record in 2021. The market generated over $23 billion in trading volume which was much high than the $100 million recorded in 2020, according to data from DappRadar.
Further, Venture capital investors have valued one of the industry’s most dominant marketplace, OpenSea, at a reported $10 billion. In addition to that, a large number of celebrities and sportspersons jumping on the NFT bandwagon has further aided the popularity of space. Media giant Twitter has become the latest to join the burgeoning NFT frenzy, as reported in a previous article.
This article was originally posted on FX Empire
