Formula 1 secures $ 100 million cryptocurrency sponsorship

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Kimi Raikkonen of Finland driving the (7) Ferrari C41 Alfa Romeo Racing during the Styrian F1 Grand Prix at the Red Bull Ring on June 27, 2021 in Spielberg, Austria.

Bryn Lennon | Getty Images

Formula 1 landed a new sponsor on Tuesday as part of a deal with Crypto.com, a platform that allows users to buy and sell cryptocurrency. Terms of the deal were not provided, but people familiar with the pact told CNBC that it was a five-year deal that totals more than $ 100 million.

As part of the deal, Crypto.com will benefit from a branded presence around F1 events, including the new Sprint qualifying format that will be used in certain races to determine the starting positions of the cars. Crypto.com will also receive trackside slots in F1 races for the remainder of the season.

The company will also present a new award at the Belgian F1 Grand Prix in August and will become its NFT partner. The Crypto.com deal goes into effect on July 17, one day before the 2021 British Grand Prix at the Silverstone circuit in England.

F1 Director of Business Partnerships Ben Pincus said in a statement the race organization will use the expertise of Crypto.com “as we explore the world of cryptocurrency, an area of ​​great interest to us. “.

Crypto.com claims to have over 10 million users on its platform and has an app available for both Apple and Android devices. The company earns revenue from transaction fees and has other sports partnerships, including the F1 team Aston Martin and the National Hockey League franchise, the Montreal Canadiens.

F1 is owned by Liberty Media Corporation, which bought the global racing entity in 2016 for $ 4.4 billion. F1 appealed to sports agency Creative Artists Agency to negotiate the deal.

“We look forward to many years of innovation together,” said Kris Marszalek, co-founder and CEO of Crypto.com, of the F1 deal. “We are also delighted to partner with F1 for the development of exclusive NFTs, connecting fans to the sport in new and innovative ways.”

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