US digital asset treasury company AlphaTON Capital Corp is buying a controlling interest (51% stake) in Telegram-based hypercasual web3 gaming platform Gamee, which is currently owned by Animoca Brands.
The deal, which is set out in a non-binding letter of intent, will also see AlphaTON buying 51% of the GMEE and WAT tokens held in Gamee’s treasury.
And when the acquisition is completed, AlphaTON will spend up to $3 million buying GMEE tokens and $1 million buying WAT tokens from the open market.
This is significant commitment given that GMEE currently has a market cap of $4 million and WAT a mere $260,000.
Although the value of the deal wasn’t disclosed, AlphaTON has raised $71 million of new capital, including a $35 million loan facility from BitGo Prime. It also plans to spend $30 million buying TON tokens.
It’s also looking to launch a TON-based healthcare insurance claims processing platform.
“AlphaTON Capital is focused on identifying the best founders in the Telegram ecosystem in order to support the growth of their businesses. The intended strategic acquisition of Gamee shows our conviction in both the brilliance of its team as well as the high-growth opportunity presented by its user base of over 61 million users on the Telegram platform,” commented CEO Brittany Kaiser.
Originally launched as a real-money mobile gaming platform, Gamee switched to web3 in 2021, launching its Arc8 platform on the Polygon blockchain. It then launched the Telegram-based Wat Protocol in 2024, airdropping WAT tokens to players later that year.
This strategy worked in terms of generating a large userbase with over 61 million registered accounts on Telegram, but both the GMEE and WAT tokens have suffered a strong price decline, respectively down 79% and 94% over the past 12 months.
“We believe that this deal, if completed, would not only make Gamee the first Nasdaq-listed web3 gaming company with gaming assets listed on a major exchange, but also demonstrate how digital asset companies can extend into profitable operating companies such as Gamee, and use profits to continue to accumulate digital assets,” added Animoca executive chairman Yat Siu.
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