Nike Inc announced Monday that it has acquired virtual sneaker developer RTFKT for an unspecified amount, as the sportswear giant seeks to aggressively extend its presence in the rapidly growing metaverse.
The acquisition is "another step forward in Nike's aggressive digital transformation," Chief Executive Officer John Donahoe said in a statement.
"Our strategy is to invest in the RTFKT brand, to service and grow their inventive and creative community, and to expand Nike's digital reach and capabilities," Donahoe explained.
Nike became the first large brand to enter the shared virtual reality last month, following Facebook Inc's recent rebranding as Meta Platforms Inc.
Users can purchase virtual land and other digital assets such as apparel for avatars in these blockchain-based ecosystems using a crypto asset called a non-fungible token (NFT).
RTFKT is a virtual shoes and collectibles company founded in 2020 by Chris Le, Benoit Pagotto, and Steven Vasilev. The company leverages gaming engines, NFTs, and augmented reality to create virtual sneakers and collectibles.
RTFKT's products are auctioned using blockchain technology, which the company claims help "guarantee authenticity, ownership, and access to new experiences."
RTFKT's cooperation with Seattle artist Fewocious, which featured tangible sneakers that correlated to digital tokens, quickly generated over $3 million in digital sneaker sales.
Nike is the only brand on the planet that shares RTFKT's unwavering commitment to innovation, creativity, and community, Pagotto explained. "We're ecstatic to expand our brand, which was fully conceptualized in the metaverse."
Nike has spent the last few months strategizing about its digital future. In late October, it filed seven requests with the United States Patent and Trademark Office to protect its marks in connection with "downloadable virtual goods" and related services.
It launched its Nikeland metaverse universe last month through a partnership with video-game platform Roblox, where users can play games and customize their avatars with digital Nike products.
Virtual worlds such as Roblox are drawing more interest and investment from fashion and apparel manufacturers, as they enable corporations to connect with younger people and raise exposure for their products.
Nike was previously speculated to be an early adopter of NFTs, which may be purchased, sold, or exchanged online using cryptocurrency and blockchain technology.
Nike received a patent in 2019 for "CryptoKicks," a method for releasing digital footwear that linked physical shoes to virtual counterparts that could be sold, exchanged, or stored in an online blockchain "locker."
