A deep dive into Animoca Brands’ explosive 170% Q4 bookings surge — what’s behind it, and what it means for Web3 gaming in 2025.
A 170% surge in bookings. A $314 million year. Is this the Web3 resurgence we’ve been waiting for?
The Comeback Story of Web3’s Biggest Contender?
For much of 2023, blockchain gaming was written off as another overhyped, unsustainable trend. Skeptics pointed to failing play-to-earn models, plunging NFT valuations, and the broader crypto market downturn as proof that Web3 gaming was destined to fade into irrelevance.
Then came Animoca Brands’ Q4 2024 results — and the narrative took a sharp turn.
The Hong Kong-based blockchain gaming powerhouse reported a staggering $108 million in Q4 bookings, marking a 170% increase from $40 million in Q4 2023. Even more impressively, its annual bookings hit $314 million, up 12% from the previous year. These are not the numbers of an industry in decline.
But beyond the headline figures, the real story is unfolding: Where is this growth coming from? What’s driving Animoca’s resurgence? And more importantly — can it be sustained?
This deep dive dissects the key financials, strategic shifts, and broader market forces shaping Animoca Brands’ potential resurgence — and what it means for the future of Web3 gaming in 2025.
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Breaking Down Animoca’s Explosive Q4 Growth
Animoca Brands’ 170% surge in Q4 bookings didn’t happen by chance. A closer look at its revenue breakdown reveals a diversified strategy spanning digital asset advisory, Web3 gaming operations, and strategic investments.
Let’s dissect the numbers.
1. The Numbers: A 170% Surge in Q4 Bookings
- Q4 2024 bookings: $108M (up from $40M in Q4 2023, marking a 170% increase).
- Annual bookings: $314M (a 12% YoY increase from $280M in 2023).
- Revenue sources:
- $57M from Digital Asset Advisory (DAA).
- $37M from Web3 gaming operations (including The Sandbox, Gamee, Open Campus).
- $14M from investment management & digital asset portfolio.
At first glance, this suggests a major comeback for the blockchain gaming space. However, a deeper dive into these revenue streams highlights where Animoca is truly gaining traction — and where risks still remain.
2. Digital Asset Advisory (DAA): The Surprise Revenue Engine
Surprisingly, the biggest driver of growth wasn’t Animoca’s gaming portfolio — it was Digital Asset Advisory (DAA), which generated $57M in Q4 alone.
DAA services help Web3 projects launch and manage tokens, providing advisory on:
✅ Tokenomics design & strategy
✅ Market-making & liquidity provision
✅ Treasury management & blockchain node operations
Animoca’s 116% YoY growth in its DAA business signals a shift in how Web3 companies generate sustainable revenue — not just through gaming, but through advisory services that support the entire crypto ecosystem.
Potential Risk: The volatility of token markets remains a concern. If regulatory crackdowns increase or token demand declines, this revenue stream could fluctuate significantly.
3. Web3 Gaming: A Slow but Steady Revival?
Animoca’s core gaming business brought in $37M in Q4, with top performers including:
🎮 The Sandbox — Still one of the most recognized metaverse brands.
♟ Anichess — A blockchain-based chess game, co-developed with Chess.com.
📚 Open Campus & TinyTap — Educational blockchain platforms that attracted new funding.
The slow rebound of Web3 gaming aligns with industry-wide trends:
- Web3 games are moving beyond “play-to-earn” hype, focusing on long-term utility.
- Major corporate partnerships (e.g., Animoca’s deals with Square Enix & SK Planet) are legitimizing blockchain-based gaming.
Challenges Ahead: While these numbers are promising, Web3 gaming adoption still faces hurdles:
⚠ User retention remains a challenge.
⚠ Blockchain games are still niche compared to traditional gaming giants.
⚠ Regulatory concerns could impact NFT-based economies.
4. Investment Management: Playing the Long Game
Animoca’s $14M in investment revenue stems from Web3 venture bets, token exits, and portfolio management.
The company has 540+ investments, including:
🔹 Metaverse & gaming projects (e.g., Yuga Labs, Axie Infinity).
🔹 AI-focused blockchain startups (e.g., Virtuals.io, FLock.io).
🔹 DeFi & infrastructure plays.
While this diversified investment strategy has helped weather market downturns, the company’s total private holdings fell from $690M (2023) to $564M (2024).
What This Means:
- Animoca is likely realizing profits from early investments.
- A decline in overall Web3 valuations is affecting portfolio value.
- The company is doubling down on AI-powered blockchain projects for future growth.
Key Takeaway: A Diversified Play, But Can It Last?
Animoca Brands isn’t just banking on gaming anymore. The company is expanding into advisory services, investment management, and metaverse ecosystems, ensuring multiple revenue streams.
However, key questions remain:
❓ Will Web3 gaming see mass adoption in 2025, or is this just a short-term rebound?
❓ Can Animoca’s advisory business sustain high margins in a volatile token economy?
❓ Are regulatory challenges on the horizon for blockchain-based digital assets?
The next section will explore Animoca’s cost-cutting measures, operational strategy, and future growth prospects — shedding light on whether this financial surge is truly sustainable.
Can Animoca Brands Sustain This Growth?
A 170% surge in quarterly bookings is impressive, but the real question is: Can Animoca Brands maintain this momentum — or is this a short-lived rebound?
The company’s latest numbers show a clear shift toward sustainability, with cost reductions, strategic AI investments, and a more diversified revenue model. However, Web3 volatility, regulatory concerns, and changing player behavior could challenge its long-term trajectory.
Here’s what’s driving Animoca’s future — and what could threaten it.
1. Cost-Cutting & Operational Efficiency: A Smart Defensive Play
A company’s growth isn’t just about revenue — it’s also about managing costs. Animoca Brands has been aggressively optimizing its spending:
💰 Total operating expenses down 12% YoY to $217M in 2024 (vs. $246M in 2023).
💰 Q4 2024 expenses dropped 15% YoY to $49M (vs. $58M in Q4 2023).
💰 AI-driven cost reductions & automation are playing a key role.
This signals that Animoca is actively de-risking its business. By cutting costs while increasing revenue, the company strengthens its ability to weather any Web3 downturns.
Potential Weak Spot: While AI-driven optimizations help, cost-cutting can only go so far. If revenue growth stalls, Animoca will need new revenue engines to maintain profitability.
2. AI & Blockchain Investments: The Next Big Bet?
One of the biggest shifts in Animoca’s 2024 strategy has been its pivot toward AI-driven blockchain projects.
The company invested in over 70 projects in 2024, with a heavy focus on:
🤖 AI-powered Web3 ecosystems (e.g., Virtuals.io, FLock.io).
💰 DeFi & blockchain infrastructure (to future-proof operations).
🎮 New AI-driven gaming models that move beyond play-to-earn.
AI-driven blockchain gaming is still in its infancy, but if AI-native Web3 experiences take off, Animoca could be positioned as a leader in this next evolution.
Risk Factor: AI investments take time to mature. If AI-blockchain gaming fails to attract mainstream users, these bets may not yield immediate returns.
3. Web3 Trust Issues: Can Animoca Rebuild Confidence?
Despite strong financials, Web3 still faces a massive trust deficit.
User hesitancy toward blockchain gaming remains a roadblock:
⚠ NFT market crashes have left players skeptical.
⚠ Play-to-earn models failed to provide lasting value.
⚠ Concerns over decentralization & digital ownership persist.
Animoca is trying to shift the narrative, focusing on utility-driven blockchain adoption rather than speculative hype. But rebuilding trust won’t happen overnight.
Biggest Challenge: Can Animoca prove that Web3 gaming offers real, long-term value beyond token speculation?
4. Regulation: The Wild Card That Could Change Everything
Blockchain gaming operates in uncertain regulatory waters, and Animoca is no exception.
Several key risks could impact its future:
⚠ Government crackdowns on crypto transactions.
⚠ Stricter NFT taxation & classification as securities.
⚠ New restrictions on blockchain-based advertising & promotions.
Any of these could significantly impact Animoca’s business model. The company is expanding into advisory services and AI, which could help hedge against regulation. But Web3’s future remains unpredictable.
How Animoca is Preparing:
✅ Diversifying revenue streams beyond token-based models.
✅ Strengthening compliance with licensed Web3 services & regulated markets.
✅ Focusing on Web3 infrastructure investments that could outlast short-term regulatory shifts.
Key Takeaway: Animoca’s Growth is Real — But Challenges Remain
What’s Working:
✔ Diversified revenue streams across gaming, digital asset advisory, and investments.
✔ Cost reductions & AI-driven optimizations improving profitability.
✔ Early leadership in AI-powered blockchain gaming.
What Could Go Wrong:
⚠ Web3 adoption remains slow — gaming trust issues persist.
⚠ Crypto regulations could impact key revenue streams.
⚠ AI investments need time to generate meaningful returns.
My Personal Thoughts: Is This the Start of Web3’s Next Boom?
Animoca Brands’ 170% Q4 growth isn’t just a short-term success story — it’s an indicator that Web3 gaming isn’t dead yet. However, the company must prove that its ecosystem can thrive in the long term without relying on hype cycles.
🔹 Will Animoca Brands maintain its momentum, or is this just another temporary Web3 rebound?
What’s Your Take?
Is Animoca Brands positioned for long-term success, or are the risks too high? Drop your thoughts in the comments!
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