Game developer Animoca Brands (ASX: AB1) has shouldered into the artificial intelligence (AI) blockchain gaming market after agreeing to purchase a 60% stake in US-based Fuel Powered which has existing commercial agreements with SEGA and Axiom Zen.
The agreement terms require Animoca to purchase the 60% equity from Lion Games with an upfront A$752,263 cash payment. The payment will give Animoca a 60% controlling interest in Fuel Powered.
Additionally, Fuel Powered’s operations manager Mik Nayeem will step into the role of Animoca’s president of games for North America.
Based in the US, Fuel Power has developed blockchain-based gaming services as well as a cloud-based platform which uses machine learning and AI to maximise profits for game publishers.
Unaudited initial accounts for Fuel Power reveal the company broke even with A$500,000 in revenue for 2017.
Meanwhile, Animoca has topped up its cash reserves after completing a A$3.25 million capital raising issuing 54.2 million new shares at A$0.06 each.
Animoca to publish CryptoKitties in China
In addition to acquiring Fuel Powered, Animoca has inked an agreement with CryptoKitties publisher Axiom Zen to exclusively distribute CryptoKitties across China.
According to Animoca, CryptoKitties is the first major game to incorporate blockchain technology and trading of the game was valued at US$20 million in its first month.
Using blockchain technology, CryptoKitties allows players to adopt, raise and trade virtual cats with the primary goal to collect and exchange the felines.
During December, one CryptoKitties virtual feline was sold for about A$330,000.
Crazy Defense Heroes brings in more cash
Meanwhile, after launching Crazy Defence Heroes two weeks ago, the game has generated A$267,000 in revenue in its second week of operation, after bringing in A$200,000 in its first week.
Available in select Asian markets on Apple’s iPhone and iPad devices, the game has now been downloaded 402,000 times since it was launched.
The role-playing character game is free to download, with Animoca making revenue via optional in-app purchases and advertising.
Crazy Defense Heroes contains a fantasy storyline with more than 500 levels.
Animoca has one of the world’s largest mobile game portfolios of recognised brands including Garfield, Ben10, Doraemon, Astro Boy and Ultraman.
The company also owns numerous other games across all genres including simulation, brain and puzzle, action, time management, strategy and role playing.
After today’s suite of announcements, Animoca’s share price shot up more than 40% to settle at A$0.098 in mid-afternoon trade.