3AC fire sale: Spencer Ventures to buy 144 Pudgy Penguins

Sotheby’s held a 3AC bankruptcy auction back in June 2023 netting $11 million

article-image

JMP_Traveler/Shutterstock modified by Blockworks

share

Spencer Ventures is set to acquire 144 NFTs in the Pudgy Penguins family from the art collection of the now-defunct crypto hedge fund Three Arrows Capital.

The institutionally backed venture capital fund struck a deal a few weeks ago priced in the “mid six figures” with Sotheby’s, the art auction house responsible for selling off 3AC’s NFT portfolio. 

Spencer Ventures will receive 48 Pudgy Penguin NFTs, visible in the Sotheby’s wallet. One of them has the ultra-rare ice crown, and the best offer for that collectible on OpenSea is 6.6 ether, or nearly $10,500. 

Also included in the purchase are 48 Pudgy Rods, a fishing rod collection that debuted in August 2021 as a free-to-claim NFT, as well as an airdrop containing an additional 48 Lil’ Pudgys. 

Lil’ Pudgys are baby penguins with a variety of different outfits. When 3AC owned these particular NFTs, it never claimed them.

“We’re going to get to bring life to a subset of the collection that’s been previously unminted. So this is part of our love and taking care of the penguins that we’re buying,” Spencer Gordon-Sand told Blockworks in a Monday interview. 

He continued, “These penguins are now off the market…we don’t plan on selling them anytime soon.”

Blockworks reported in September that physical penguin plushy toys are hitting the shelves of Walmart locations ahead of the 2023 holiday season. Pudgy Penguins drew some $500,000 worth of sales in their first few days of being available on Amazon.

Gordon-Sand told Blockworks that the firm was drawn to the deal in part because of how the collection has maintained its value over time. 

“Most of the CEOs in the NFT space have been CEO of their project while it went down 95% in price. Pudgy Penguins today are pretty close to their all-time high price, conversely to most of the rest of the market,” Gordon-Sand said. 

CoinGecko data shows that while the collection is below its all-time high floor price of around 7.1 ether (ETH), its floor price is just under 5 ETH today.

Gordon-Sand said he connected with Sotheby’s representatives after the June 15 auction of 3AC’s assets, which netted $11 million for the creditors of the collapsed crypto hedge fund. Gordon-Sand attended that auction and inquired about 3AC’s Pudgy Penguins holdings after they weren’t put up for sale during that event. 

Read more: Sotheby’s Auctions off 3AC’s NFT Collection for $2.5M

“We had a pretty intense negotiation that literally took several months,” he said, which culminated in a signed agreement several weeks ago. 

The transfer of the assets from Sotheby’s to Spencer Ventures is set to occur at some point Tuesday, according to Gordon-Sand.

Updated Dec. 4, 2023 at 1:58 pm ET: The headline of this report has been edited for clarity.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Hilton Park Lane

Tues - Wed, November 10 - 11, 2026

DAS London is a two-day summit at the Hilton Park Lane in London featuring conversations between the builders, allocators, and policy makers who are shaping the trajectory of the digital asset ecosystem in the UK, Europe, and North America.

Marina Bay Sands Singapore

Wednesday, October 07, 2026

DAS Asia is a a single-day summit at Marina Bay Sands Singapore featuring conversations between the builders, investors, and global leaders are shaping the trajectory of the digital asset ecosystem in Asia & North America.

recent research

Black Generic.png

Research

Compute demand is two-sided, the precondition for any hedging market. Producers (neoclouds and independent data centers) fear their inventory clears below cost. Consumers (inference platforms and the agentic application layer) fear compute will get more expensive. The common read holds that nonfungibility keeps both off any general exchange, since a buyer wants a named SKU in a named region rather than a basket, so the trade stays bilateral and the only exchange users are dealers hedging their book. That describes launch conditions, but understates how commodity markets form. Canonical benchmarks get made through trading, and reservations standardize as the curve deepens. The dealer-intermediated structure is not the end state, it is the seed of one.

Newsletter

The Breakdown

Decoding crypto and the markets. Daily, with Byron Gilliam.

Blockworks Research

Unlock crypto's most powerful research platform.

Our research packs a punch and gives you actionable takeaways for each topic.

SubscribeGet in touch

Blockworks Inc.

133 W 19th St., New York, NY 10011

Blockworks Network

NewsPodcastsNewslettersEventsRoundtablesAnalytics