BIGG Digital Assets, the Canadian Securities Exchange (CSE)-listed owner of online cryptocurrency brokerage Netcoins, has agreed to acquire shares of Web3 company Terrazero Technologies Inc that BIGG does not currently own in a transaction valued at $20 million.
This transaction, which is expected to close in September 2023, will see TerraZero, a player in the Web3/Metaverse sector with prominent clients like Miller Lite, PwC, and Warner Records, become a wholly-owned subsidiary of BIGG.
TerraZero helps brands create immersive experiences in the metaverse. It owns digital real estate for brands to establish a presence in existing virtual worlds and offers private worlds for brands to provide offices and services in the metaverse.
BIGG CEO Mark Binns expressed his enthusiasm for the acquisition, noting TerraZero’s rapid growth and the potential it brings to BIGG’s portfolio.
He highlighted the acquisition as a strategic move to diversify and expand BIGG Digital’s reach in the metaverse business while adding new revenue streams and a “blue sky opportunity” via TerraZero’s Intraverse product.
TerraZero, which generated approximately $1.5 million in revenue and a 161% year-over-year growth in the first half of 2023, plans to focus on the development of its Intraverse technology ecosystem, expected to launch in Q1 2024.
TerraZero CEO Dan Reitzik believes that the Intraverse technology platform is “the future of immersive and interactive ecommerce” and the upcoming 3D internet.
He anticipates that the integration of BIGG’s complimentary products and services will benefit the Intraverse platform as crypto becomes a more accepted and regulated payment method.
The transaction involves the exchange of approximately 1.69 BIGG Shares for each TerraZero Share, totaling approximately 62 million BIGG Shares. TerraZero shareholders representing 59% of common shares and 100% of preferred shares have already entered into escrow and support agreements in favor of the transaction.
Upon closing, existing BIGG and TerraZero shareholders will own approximately 80% and 20% of BIGG, respectively.
BIGG invests in products and companies to support a safe, compliant, and regulated crypto environment. In addition to TerraZero, BIGG’s portfolio also includes Netcoins and Blockchain Intelligence Group.
BIGG owns 150 Bitcoin, valued at approximately $5.6 million as of the end of May 2023.