Privately held sports apparel and collectible company Fanatics is divesting its 60% stake in non-fungible token (%NFT) firm %CandyDigital.
Fanatics is selling its stake in Candy Digital to an investor group led by %GalaxyDigital, a %Cryptocurrency bank that is another major shareholder in Candy Digital.
Candy Digital was founded in 2021 in the middle of a sports NFT boom. The company has a multiyear licensing agreement with Major League Baseball (MLB) to produce NFTs, including an exclusive Lou Gehrig NFT.
Candy Digital also released digital collectibles based on the %Netflix ($NFLX) television series Stranger Things, professional wrestling, and Nascar race teams.
However, the NFT market has crashed in recent months along with the cryptocurrency sector.
Candy Digital raised $100 million U.S. in an October 2021 funding round that valued the company at $1.5 billion U.S. Investors in that funding round included SoftBank’s Vision Fund and Hall of Fame quarterback Peyton Manning.
In January 2022, Fanatics acquired Topps trading cards for $500 million U.S. after also acquiring the rights to produce baseball trading cards.
Fanatics raised $700 million U.S. in a December 2022 funding round, and said it plans to use that money to focus on potential acquisitions.
Fanatics is pushing into sports betting and gaming as those activities become legal in more jurisdictions across North America.
Though not publicly traded, Fanatics value has been estimated at $31 billion U.S.