Snail, Inc., the publicly traded U.S. subsidiary of one of the first online video game developers in China, said it plans to raise funds to explore digital assets, including the launch of its own USD-pegged stablecoin.
In a press release published on Thursday, Snail said it has entered an agreement with investment bank H.C. Wainwright & Co. to sell up to $4.5 million worth of its Class A common stock in an at-the-market offering. The company said the proceeds would primarily support its “digital asset initiative,” including evaluating and potentially launching a proprietary U.S. dollar-backed stablecoin.
Some funds would also serve as reserve assets for the stablecoins Snail plans to issue, according to the press release.
After the announcement late last week, Snail, which trades on the Nasdaq under the ticker SNAL, jumped 6.3% from $0.95 to $1.01. Today, SNAL is trading near $0.99, up 4.6% over the last five days, but down nearly 30% on the month. The firm went public via IPO in November 2022.
In an Aug. 7 filing with the U.S. Securities and Exchange Commission, the company explained the move, stating that “exploring stablecoin infrastructure may position us as an early mover within the digital entertainment industry.” The filing also noted that the firm was still evaluating integrating stablecoin infra “as part of our broader innovation roadmap,” but had not yet come to a decision.
The company added that it may require “additional capital to support our strategic digital asset initiative” referring to licensing requirements and compliance costs.
Founded in 2000, Snail Inc.’s parent company, Suzhou Snail Digital Technology — also known as Snail Digital — calls itself “one of China’s largest 3D digital culture entertainment producing companies.” The gaming company is mainly focused on multiplayer online (MMORPGs), real-time strategy, and casual games. Its global registered user base has reached over 70 million, per the company’s LinkedIn profile.
The Defiant reached out to Snail for comments on their digital asset plans, but has not heard back by press time.
In May, gaming operating system Playtron announced the launch of its own stablecoin, dubbed Game Dollar, based on the Sui blockchain. The firm’s stablecoin infra partner, M0, said that the move was “unlocking a new economic layer that’s long overdue.”