Formula 1 strikes $100 million cryptocurrency sponsorship

Formula 1 landed a new sponsor Tuesday in a deal with Crypto.com, a platform that allows users to buy and sell cryptocurrencies. The terms of the agreement were not provided, but people familiar with the pact told CNBC it’s a five-year deal that totals more than $100 million.

As part of the agreement, Crypto.com will get brand presence around F1 events, including the new Sprint qualifying format that will be used in some races to determine the starting positions of the cars. Crypto.com will also receive trackside slots at F1 races for the remainder of the season.

The company will also introduce a new award at F1′s Belgian Grand Prix in August and become its NFT partner. The Crypto.com agreement takes effect on July 17, a day before the 2021 British Grand Prix at the Silverstone Circuit in England.

F1 director of commercial partnerships Ben Pincus said in a statement the racing organization would use expertise from Crypto.com “as we explore the world of cryptocurrency, an area we are very interested in.”

Read This: Emirates-Nigeria standoff over Dubai flights explained

Crypto.com says it has more than 10 million users on its platform and has an app available for Apple and Android devices. The company makes revenue from transaction fees and has other sports partnerships, including F1 team Aston Martin and National Hockey League franchise, the Montreal Canadiens.

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

“We look forward to many years of innovating together,” Crypto.com co-founder and CEO Kris Marszalek, said of the F1 agreement. “We’re also excited to partner with F1 in the development of exclusive NFTs, connecting fans to the sport in new and innovative ways.”