Fanatics Selling Its 60% Stake in Sports NFT Firm Candy Digital: Report

The sports merchandiser is selling its interest to an investor group led by Michael Novogratz’s Galaxy Digital, according to CNBC.

AccessTimeIconJan 4, 2023 at 10:10 p.m. UTC
Updated May 9, 2023 at 4:05 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Sports apparel and memorabilia firm Fanatics is selling its 60% stake in sports-focused NFT (non-fungible token) company Candy Digital to a group led by noted financier Michael Novogratz's Galaxy Digital, according to a report from CNBC, which cited an internal email it obtained.

Terms of the deal weren't disclosed, according to CNBC.

“Divesting our ownership stake at this time allowed us to ensure investors were able to recoup most of their investment via cash or additional shares in Fanatics – a favorable outcome for investors, especially in an imploding NFT market that has seen precipitous drops in both transaction volumes and prices for standalone NFTs," Fanatics founder and Executive Chairman Michael Rubin wrote in the internal email.

Galaxy Digital set up Candy Digital along with entrepreneur Gary Vaynerchuk and Fanatics in 2021 during a booming period for the sports NFT market. In October 2021, Candy Digital raised $100 million in a Series A funding round at a $1.5 billion valuation.

Candy Digital declined to address the reported sale of the Fanatics stake, but separately announced a Series A1 funding round led by Galaxy and ConsenSys Mesh, with participation from 10T Holdings and ConsenSys, among others. Terms of the fundraising weren’t disclosed.

Fanatics didn't respond to a request for comment.

UPDATE (Jan. 5, 21:39 UTC): Added response and announcement from Candy Digital.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.