UK-based cryptocurrency technology developer Pluto Digital has signed a non-binding letter of intent for a reverse merger with NFT Investments, an incubator specialising in the market for non-fungible tokens.
NFT plans to acquire Pluto, which is backed by blockchain technology provider Argo Blockchain, in return for 2.4 billion new shares in NFT priced at 4p each, equating to £96m ($120m).
News of the deal comes after NFT applied to list on the Neo Exchange, a Canadian stock exchange based in Toronto. The acquisition would be a reverse takeover of NFT, with Pluto shareholders holding 70.5% of the enlarged business once the deal closes.
Pluto was set up in January 2021 and has released a decentralised finance (DeFi) token which is trading on global crypto exchanges as well as setting up a corporate venture capital arm, Pluto V, which has made investments in a range of Web3 projects and NFT assets.
Pluto has a strategic shareholding in a UK gaming development studio Maze Theory, which has published games around the Dr Who and the Peaky Blinders franchises, as well as blockchain-based play-to-earn titles.
Argo led a $40m funding round for Pluto in May 2021 that included Pires Investments and Riverfort Global Opportunities, taking a stake of approximately 25% in the process.
Barry Downes, digital director at Pluto, said: “Pluto has been pioneering the next generation of crypto technologies in the decentralised finance and metaverse blockchain gaming sectors.”
There has been increased fundraising and activity in blockchain-related assets despite recent falls in the price of cryptocurrencies such as Bitcoin.
In other news, Singapore-based Blockchain Founders Fund has reached the first close of a $75m second VC fund, from limited partners (LPs) including blockchain consulting firm TechMeetsTrader, digital currency exchange Zipmex and crypto trading firm GSR.
Neo Global Capital, Appworks, Baksh Capital, LD Capital, Metavest Capital and Octava are also amount the fund’s LPs along with metaverse developer Sandbox’s chief operating officer, Sebastien Borget. It is targeting emerging projects in the cryptocurrency, metaverse and Web3 sectors.
Orange DAO, a decentralised autonomous organisation (DAO) – a crypto collective backing Web3 startups – has meanwhile accumulated more than 1,000 applicants from prior founders from the Y Combinator accelerator, TechCrunch has reported.
