Fanatic, the famous sports merch giants are selling their stake in candy digital as they are getting a close feet due to the crypto winter in the NFT Market.
As trust in the investment portfolio dwindles, sports apparel manufacturer Fanatics is selling its shares in Candy Digital, a NFT startup.
Fanatics, a sporting firm owned by Michael Rubin was reportedly selling its 60% investment in the NFT company on January 4.
Fanatics, which was established in 2011 and thus is currently priced at $31 bn, is a well-established brand in sports merchandise and online shopping.
However, the NFT industry has been severely impacted by the cryptocurrency winter of the market in 2022, and Rubin’s company appears to be aiming to move away from “self contained” NFT firms.
Fanatic To Sell Majority Shares In Candy Digital:
As per CNBC, a set of investors led by Novogratz’s Galaxy Media will buy a share in Candy Digital. Ruben, in his shared mail with the media outlet have said that in the past years, it has been clear to him that the crypto or NFT market will fail to become a self-contained or profitable business. He also said that the ownership of the firm allowed them to make sure that the investors will recoup mostof the investments they have made.
Topps playing cards were purchased by Fanatics in Jan 2022 for around $500 mn. Upon Candy Digital’s debut the year before, it also secured the rights to create the MLB trading cards and later NFTs.
In Dec, Fanatics secured $700 mn in new funding. As per CNBC, the money would be used to explore possible acquisition and merger options across the company’s antiques, sports gambling, and gaming sectors. In Oct 2021, Candy Digital obtained $100 mn in investment at a $1.5 bn value.