Animoca Brands is a Web3 leader that leverages tokenization and blockchain to deliver digital property rights to consumers, helping to establish the open metaverse and its associated network effects. It has received broad industry and market recognition including Fortune Crypto 40, Financial Times’ High Growth Companies Asia-Pacific, Top 50 Blockchain Game Companies 2025, and Deloitte Tech Fast.
Animoca Brands realizes its mission via three integrated business pillars: operating Web3 businesses to advance blockchain adoption with native projects such as Moca Network, Anichess, The Sandbox, Open Campus, NEOM Web3 initiatives, and a regulated stablecoin project in partnership with Standard Chartered and HKT; providing digital asset advisory services including tokenomics advisory, liquidity provisioning, and institutional research to help external Web3 projects grow; and investment management, with a portfolio of investments in over 540 companies including industry leaders Pudgy Penguins, Yuga Labs, Axie Infinity, Polygon, Consensys, Magic Eden, OpenSea, Dapper Labs, YGG, and many others.
Crypto Accounting Perspective: Key Considerations
Animoca Brands’ 2021 annual report offers important insights into the accounting challenges facing digital asset companies:
1. Strong Cash Flow vs. Accounting Loss
- FY2021 operating cash inflow was A$382M, yet reported a net accounting loss of A$671M, mainly due to non-cash items such as share-based payments, fair value remeasurements, and convertible note derivatives.
2. Deferred Revenue for Token Sales
- Animoca recognizes revenue over 15–18 months, tied to service delivery in platforms like The Sandbox.
- Token sales are initially booked as deferred revenue, then amortized — similar to SaaS models but with added blockchain-specific complexity.
3. Classification of stablecoins
- Animoca classifies stablecoins as inventory or intangible assets, depending on their purpose and intended use.
4. Share-Based Payments
- Over A$229M in share-based payments was expensed in FY2021, significantly impacting net profit.
5. Evolving Regulatory Landscape
- Animoca notes the lack of clarity around whether tokens might be considered “securities” in some jurisdictions — a risk factor that could affect accounting treatment and compliance obligations globally.