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.
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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, 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.