Nexon Hodls defies 40% of its $ 100 million Bitcoin purchase in loss

Source: AdobeStock / Myst

Crypto-mad South Korean gaming giant Nexon continues to hold its Bitcoin (BTC) – although a few months ago it wrote off around 40% of the money it spent on a groundbreaking $ 100 million BTC purchase a few months ago as a loss .

In an official press release, Nexon said it would reassess its reporting on the asset’s value in its next quarterly earnings report, slated for September this year.

This is because Nexon’s Japanese operations decided to record a valuation loss of just over $ 40 million as an “external” non-operating expense.

Nexon kicked off the pace in Asia when it issued Bitcoin worth $ 100 million in late April and bought BTC 1,717 for an average of around $ 58,000 per token.

However, falling token prices have wiped out the worth of the million dollar asset. The company spent just under 2% of its total cash on the purchase, reported several South Korean and Japanese media outlets.

At the time of the purchase, Nexon President and CEO Owen Mahoney said the company was aware of the risks of investing in crypto and was investigating them. But he also said:

“Our purchase of Bitcoin reflects a disciplined strategy to protect shareholder value and maintain the purchasing power of our cash.”

The gambling company, listed on the Tokyo Stock Exchange in Japan, appears to be a firm believer in crypto.

It bought South Korea’s first crypto exchange Korbit in 2016 and grabbed Europe’s older trading platform Bitstamp a few years later.

The company is also said to have been interested in a deal to buy Korbit rival Bithumb. The latter went on sale last year, but a potential Nexon deal, which was reportedly close to closing as early as January, has allegedly failed due to possible contractual disagreements.

In the United States, all eyes will now be on automaker Tesla and its BTC holdings as the company prepares for the release of its Q2 earnings report. However, the exact date on which it could happen is not known.

At 15:31 UTC, BTC is trading at $ 33,573 and is almost unchanged in one day. It dropped 3% in a week and 9% in a month. The price almost halved after hitting its all-time high of around $ 65,000 in April.

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