Fanatic to sell majority 60 percent stake in Candy Digital as NFTs lose steam
An investor group led by Mike Novogratz's Galaxy Digital will be purchasing Fanatics' majority stake in Candy Digital
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Sports merchandise company Fanatics is selling its majority 60 percent stake in NFT company Candy Digital as interest in NFTs decreases.
Fanatics, which was founded in 2011 and is valued at $31 billion, has a strong presence in sports merchandising and e-commerce. However, the declining crypto market has affected the NFT sector, leading Fanatics to shift away from solely focusing on NFT businesses.
A group led by Mike Novogratz's Galaxy Digital will be purchasing Fanatics' majority stake in Candy Digital.
According to Fanatics founder Michael Rubin, it has become clear that NFTs are not likely to be profitable or sustainable as a standalone business and that NFTs alone do not create much value. As a result, Fanatics has decided to divest its ownership in Candy Digital and allow investors to recoup their investments through cash or additional shares in Fanatics.
Rubin also stated that standalone NFTs have seen drops in both transaction volumes and prices in an imploding NFT market and that they believe that digital assets will have more utility and value when connected to physical collectibles to create the best experience for collectors.
