#8 - Treasury report April 2022
We share a breakdown of the current Merit Circle ecosystem treasury including any outstanding investments.
This report contains a breakdown of the Merit Circle ecosystem treasury as of the 31st of March (herein referred to as the "Treasury").
With the coming of a new month, we are glad to share the latest treasury report. In this report, we provide an exact overview of Merit Circle’s current financial status. We share a breakdown of the treasury including any outstanding investments, buybacks and other financial activities.
This treasury report is based on the status of the treasury on the 31st of March 2022.
Treasury status
In the past month the treasury increased from $120,992,104 in February to $126,234,076 at the end of March, a 4.3% increase from the previous month.
Merit Circle has realized $949,995 in total income during the month March from token and NFT sales.
Gaming operations
The month of March has been a month stabilization, preparation and anticipation. On one hand, we’ve seen one of the largest exploits hit the Axie Infinity ecosystem and on the other some of the earlier released games are slowly maturing. Ascenders, a highly anticipated game released their playable demo showcasing great potential.
Axie Infinity
In the past couple of months we have been slowly downscaling our Axie Infinity operations and moving most gamers towards other, more promising Play-to-Earn games. Nevertheless, we are paying close attention to the Axie Infinity ecosystem and wait in anticipation for the Axie Origins release. Whatever this means for Merit Circle and its exposure to Axie Infinity will become evident upon release.
At the end of March, the Ronin Blockchain, the blockchain processing all the in-game operations for Axie Infinity suffered one of the largest exploits to date. Luckily, no treasury funds have been lost in the exploit.
Cyball
As one of our close partners, we have been in direct contact with the CyBall team to provide them with valuable feedback regarding their game. Having most of our gamer spots filled currently, we are witnessing some of the challenges the game has in terms of sustainability. Nevertheless, we are working hard to ensure a healthy economy.
The game is slowly rolling out the mentorship program which makes it possible to generate novel NFTs with existing NFTs. We are currently analyzing what the best strategy is to limit risk and ensure upside. Important to share is that Merit Circle is close to break-even on the initial investment ($200k+ realized revenue) through de-risking in both assets and through the reward-split with gamers.'
Fancy Birds
Another one of our close partners is Fancy Birds, the simplistic but rather addictive game that rolled out their game to the public eye recently. Whereas most games are heading for a dual-token model, Fancy Birds has recently announced their rather unique way of distributing revenue across the ecosystem. This is done with a single token and therefore, Merit Circle is exposed to a significant percentage of this revenue.
The game has also released the breeding functionality. We are currently experimenting with this functionality and have successfully bred a couple hundreds birds that we’ll use to either create more spots for gamers, or to liquidate on the secondary market. We are very actively in touch with the Fancy Birds team and are eager to support them with testing rental systems and in-game feedback
Other games
Besides the games mentioned above, Merit Circle’s operations in WonderHero and Vulcan Forged continue. Merit Circle has sold off parts of the PYR held according to the de-risking mandate and will re-assess when land-staking goes live.
We are actively talking with our wide range of partners to asses which games are fitting for our gamers to start playing.
Treasury overview
The treasury balance as of the 31st of March 2022 is $126,234,076.
When calculating our treasury’s balance, we only include non-native assets. This means we do not count the balance of MC tokens towards the total balance of our treasury since it might paint a diluted picture of the reality.
Since MC tokens will not be utilized for investment purposes, they will not be included in our balance sheet. Those interested can view the current balance in the main wallet to be viewed in the wallet overview beneath. In that sense, we have not included the AXS & SLP balance, since both are mainly used for breeding purposes marking them as working capital instead of additional treasury funds.
We will break down the treasury in four categories; cash, staking, NFTs and tokens.
Cash
Staking
NFTs
Tokens
Wallet overview
To operate completely transparent, we would like to provide a full list of wallet addresses Merit Circle currently utilizes.
Ethereum
Binance smart chain
Solana
Ronin
To conclude
We are happy to close off March with a decent increase for the treasury. As the year progresses we see more and more interesting games making ways to the digital realms. Our investment team is constantly finding interesting deals that help sustain our long-term vision. More can be found in this overview of the investment vertical here.
Notes
All of the balances and prices are based on calculations made on the 31st of March 2022
All of the investments made after the 31st of March 2022 are not included in the treasury report unless specifically mentioned.
This report represents the Merit Circle ecosystem treasury as of end of March 2022, which includes assets held by the Merit Circle DAO, and DAO-adjacent entities, including the Merit Circle ecosystem purpose trust and Merit Circle Squared Limited held on trust for a purpose (jointly herein referred to as “DAO assets”, “DAO treasury” or similar). The assets held by DAO-adjacent entities are not controlled by the DAO or held on behalf of it. The DAO can however exert certain checks and balances on the DAO-adjacent entities and the entities have a mission and purpose that is aligned with the DAO's, including to accelerate the growth and development of the Merit Circle ecosystem. This report has been prepared based upon information from sources believed to be reliable, including market prices, data and other information from such sources, but such information has not independently been verified and this communication makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This report is provided for informational purposes only, and should not be relied upon as legal, business, investment, financial or tax advice. You should consult your own advisers as to those matters. References to any digital assets and the use of finance-related terminology are for illustrative purposes only, and do not constitute any recommendation for any action or an offer to provide investment, financial or other advisory services. This content is not directed at nor intended for use by the Merit Circle community or others, and may not under any circumstances be relied upon when making a decision to purchase any digital asset referenced herein. There can be no assurance that the investments mentioned herein will be profitable. The digital assets referenced in this report currently face an uncertain regulatory landscape in several jurisdictions. The legal and regulatory risks inherent in referenced digital assets are not the subject of this content.
Charts and graphs provided in this report are for informational purposes only and should not be relied upon when making any decision. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others