Kimi Raikkonen from Finland drives the (7) Alfa Romeo Racing C41 Ferrari during the F1 Grand Prix of Styria at the Red Bull Ring on June 27, 2021 in Spielberg, Austria.
Bryn Lennon | Getty Images
Formula 1 won a new sponsor on Tuesday as part of a deal with Crypto.com, a platform that enables users to buy and sell cryptocurrencies. The terms of the contract were not disclosed, but people familiar with the pact told CNBC that it was a five-year contract valued at over $ 100 million.
Under this agreement, Crypto.com gains branded presence at F1 events, including the new Sprint Series, a qualification format that determines starting positions in races. In addition, Crypto.com will also receive track slots in F1 races for the remainder of the season.
The company will also introduce a new award at the Belgian Grand Prix in August and become its NFT partner. The Crypto.com agreement will be activated on July 17th, the day before the 2021 British Grand Prix at the Silverstone Circuit in England.
In a statement, Ben Pincus, F1 director for commercial partnerships, said the racing organization would use “expertise” from Crypto.com “while we explore the world of cryptocurrency, an area we are very interested in”
Crypto.com claims to have over 10 million users on its platform and has an app for Apple devices and Android phones. The company generates income from transaction fees and has other sports partnerships, including the F1 team Aston Martin and the National Hockey League’s franchise, the Montreal Canadiens.
F1 is owned by Liberty Media Corporation, which bought the global racing company for $ 4.4 billion in 2016. F1 used the sports agency Creative Artists Agency to negotiate the deal.
“We look forward to many years of joint innovation,” said Kris Marszalek, Co-Founder and CEO of Crypto.com, of the F1 agreement. “We are also excited to partner with F1 to develop exclusive NFTs to connect fans to the sport in new and innovative ways.”