• Candy Digital, a sports-focused NFT company, has raised $38.4 million in a Series A extension funding round.
• The announcement followed reports that sports merchandiser Fanatics was selling its 60% stake in the company.
• A new filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday finally provided some financial figures.
Candy Digital, a sports-focused non-fungible token (NFT) company, has announced a Series A extension funding round earlier this month and has now raised $38,449,997 from 14 investors. The announcement followed reports that sports merchandiser Fanatics was selling its 60% stake in the company, but the amount was not included. A new filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday finally provided some financial figures.
Candy Digital was established in 2021 by Galaxy Digital, Gary Vaynerchuk and Fanatics during a sports NFT boom, and debuted with a Major League Baseball (MLB) partnership. The startup raised a $100 million Series A round in October of that year at a $1.5 billion valuation.
However, the NFT industry has seen a recent downturn, which has made it difficult to sustain the hype of the industry. Despite this, the company has managed to raise the $38 million in an equity offering, more than half of the $68,188,480 overall that the company is seeking to raise in the sale. The offering opened on Jan. 3, the same day that CNBC reported that Fanatics was selling its stake to a group led by well-known financier Michael Novogratz’s Galaxy Digital.
This influx of funding from the Series A extension is expected to help Candy Digital continue to expand its reach in the NFT space. It will also provide the company with the resources it needs to grow its existing partnerships in the sports industry.
Although the NFT industry has seen its fair share of ups and downs in recent months, the success of Candy Digital’s Series A extension round shows that there is still interest in the sector. With the additional funds, the company is well-positioned to continue its growth and make an impact in the sports NFT space.