The9 Limited Secures $8 Million Strategic Investment for Global GameFi Platform Development

On March 31, Nasdaq-listed The9 Limited (NASDAQ: NCTY) announced that it had signed private placement agreements with cryptocurrency investment funds Elune Capital, Fine Vision Fund, and Bripheno Pte. Ltd. This strategic investment of $8 million aims to propel The9's ambitious plans to establish a global GameFi platform. As part of the agreement, The9 will issue Class A common shares to investors, further solidifying its position in the rapidly growing blockchain gaming industry.

About The9 Limited and the Investment Details

Publicly listed on Nasdaq since 2004, The9 Limited is an internet company engaged in online games operation and Bitcoin mining business. The 9 is now venturing into the GameFi space, committed to leverage blockchain technology to revolutionize gaming experiences. According to the agreements, The9 will issue a total of 302,263,200 warrants, each representing the right to purchase one Class A common share. These warrants are equivalent to 1,007,544 American Depository Shares (ADS), assuming full exercise. The warrants have a two-year exercise period, with certain conditions tied to their activation.

Some warrants are priced at $60 per ADS, while others are divided into two equal tranches. The first tranche can be exercised once the investors or their business partners sign strategic cooperation agreements with The9. The second tranche becomes exercisable upon the launch of The9's GameFi platform. The exercise price of these warrants will align with the offering price of ADS under the agreements.

Among the investors, Fine Vision Fund is an crutial player. It was established by Finewill Capital in 2022, focuses on global gaming investments and advancing the gaming industry's future. With tens of millions of funding, it has supported diverse projects, including MMORPGs, SRPGs, and casual games. The fund is particularly keen on innovative gaming models and combining traditional game development with blockchain technology.

The Vision for a Global GameFi Platform

The9 plans to establish a new subsidiary to manage its global GameFi platform. The company is also exploring partnerships with third-party cryptocurrency foundations to issue tokens that will serve as the official cryptocurrency of the platform. Additionally, The9 intends to collaborate with leading global cryptocurrency exchanges to onboard users onto its GameFi ecosystem.

George Lai, Executive Director and CFO of The9, emphasized the transformative potential of this initiative, stating, "Promoting the universal access and application of cryptocurrency in gaming" is a core objective. By integrating blockchain technology and cryptocurrency, The9 aims to attract diverse gaming communities, including Web2 and Web3 players, and offer unique gaming experiences that traditional platforms cannot provide.

Strategic Milestones and Future Plans

The9's new GameFi platform will operate under the concept of "The Platform is a Big Game," aiming to merge the worlds of gaming and cryptocurrency seamlessly. The company plans to issue 10% of its shares over the next three years to support the future market, operations, and exchange activities of its GameFi token.

"This strategic cooperation is an important milestone for The9 to enter into the global GameFi industry. The investment and support from well-known cryptocurrency investment funds will make our new global GameFi platform concept "The Platform is a Big Game" possible. "Lai said.