With the rise of cryptocurrencies like Bitcoin and Ethereum, companies involved in the crypto space have seen tremendous growth. One such company is Embracer Group, a Swedish video game holding company that has made over 25 triple-A games and has over 200 projects in development. Through acquisitions of gaming studios like Deep Silver, Coffee Stain, and Saber Interactive, Embracer Group has accumulated valuable IP and positioned itself as a major player in the industry.
Embracer Group’s diverse business strategy mitigates crypto risk
Unlike other crypto companies focused solely on blockchain technology, Embracer Group has gaming IPs like Tomb Raider, Saints Row, and Metro under its belt. This diversity makes Embracer Group less susceptible to swings in the cryptocurrency market. While the company isn’t directly involved in crypto, its steady gaming revenues allow it to weather downturns that negatively impact pure-play crypto businesses.
Acquisitions fuel Embracer’s crypto-beating growth
Embracer Group has followed an aggressive M&A strategy, acquiring struggling yet valuable gaming assets. For example, in 2013 it purchased THQ assets for just $4.9 million as THQ neared bankruptcy. Embracer later rebranded THQ Nordic and further expanded the business. Thanks to over 30 acquisitions, Embracer’s market cap has grown over 50 times from 2016 to $9 billion today – handily beating out returns from top cryptocurrencies.
Saber Interactive purchase expands crypto-relevant capabilities
In 2020, Embracer Group acquired game porting specialist Saber Interactive for up to $525 million. Saber is responsible for hits like Halo: Combat Evolved Anniversary and The Witcher 3 on Nintendo Switch. This acquisition positioned Embracer to support crypto-based blockchain gaming and the metaverse, while minimizing exposure to crypto volatility.
Although not a pure-play cryptocurrency business, Embracer Group’s market-beating growth has been fueled by acquiring undervalued yet high-potential gaming assets. Its diversified business strategy continues to pay off as the company works on over 200 game projects including 25 triple-A titles.