Newly Released Financial Records Confirm Astralis Are In Dire Straits

The Danish esports organisation's shareholder report confirms reports that they are looking for new investors or someone to buy them outright

Astralis’s CS team were last seen in action in PGL Astana and are currently watching the Austin Major from home

Following several reports in the media that Danish esports organization Astralis was looking to sell their brand, they have now released financial records that confirm that plan is underway. The shareholder document also confirms that Astralis have been losing significant amounts of money even as they made layoffs and shuttered several projects. You can read the full document below but here is a summary of the key points.

Astralis A S Draft Consolidated Financial Statement 2024 (13 06 2025)

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The letter to shareholders opens with the following quote:

2024 has been a challenging year. Because of poor sporting performance and related negative impact on commercial activities we consolidated our business further by closing all non-sporting activities towards the end of 2024. The negative performance resulted in a net loss before taxes and depreciation of DKK -31.3 million [$4.75 million] for the year.

The document then explicitly states that they were pursuing three strategic outcomes to secure more funding by a sale of either all or some of the company’s shares and assets. This is in line with our own reporting on the situation, with our understanding being that its possible they could opt to sell their Counter-Strike team or individuals from it in a bid to raise capital.

Following the financial performance of 2024 the company has intensified the efforts of the strategic review announced in 2023 in order to secure additional funding by either; pursuing a combination with another company, an issuance of new shares, or a sale of all or some of the Company’s shares and/or assets. It is the assessment of the Management that one of the 3 options mentioned will be completed during the coming months.

Astralis management point to Valve’s decision to refuse licenses to so-called “franchise leagues” for Counter-Strike. Both ESL and BLAST operated their circuit under this method and the lack of income from these joint ventures seems to have contributed to Astralis’s financial woes. This was compounded by the negotiated sale of their League of Legends European Championship (LEC) franchise slot. While the sale to Karmine Corp did generate approximately $18 million, the outstanding payments appear to be deferred until the end of 2025 and 2026.

They also state that the “poor sporting performance” from their Counter-Strike team, the sole remaining squad at the organisation, has also contributed to their financial decline and that it had an “adverse effect on sponsorship sales in Astralis.” It is also explicitly stated that the organisation could cease operations entirely in the following passage:

If the company is unable to add new capital to the company either by merging with another company, issuing new shares or making a full or partial sale of the company's activities, significant doubts may be raised about the company's ability to continue operations

This is reiterated towards the end of the letter when they again repeat that without new investment the future of the organisation would be subject to significant uncertainty:

The Group has assessed that the valuation of Astralis Management ApS and Astralis CS ApS are subject to significant uncertainty should the company not secure new capital. No other assets or liabilities are subject to significant uncertainty in relation to valuation or recognition. The parent financial statements show equity, which is significantly higher than equity showed in the consolidated financial statements, and which is higher than the market capitalization of Astralis A/S based on share price prior to the delisting of the company. The high equity value is relating to investments in subsidiaries and receivables from group enterprises. Management has assessed that the fair value of the franchise rights referred to above and owned by subsidiaries of Astralis A/S supports the assessment that the investment in subsidiaries and receivables from group enterprises are expected to be fully recoverable.

Attempts to find a buyer have been underway since the end of last year and it isn’t known if Astralis have found a bidder. The longer they go without investment the higher the likelihood they will have to sell their remaining players and close their Counter-Strike division. In all likelihood if such a deal were to be forthcoming it would happen during the player break after BLAST’s Austin Major. We will bring you more on the story as it develops.