South Korean-Japanese game maker Nexon today announced a $ 100 million investment in Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, as per publication.
1 / Nexon just announced the purchase of $ 100 million in #Bitcoin. This is the first major publicly traded company in Japan and Korea to buy cryptocurrency as part of its treasury. This is a really big deal for several reasons. https://t.co/r38lBtx29M
– Steve Jang (@stevejang) April 28, 2021
The company is listed on the Tokyo Stock Exchange (TSE: 3659) and specializes in online games for PC and mobile phones. Currently over 50 titles – including hits like MapleStory and Crazyracing Kartrider – are distributed.
It was rumored that Nexon was among the forerunners in buying Crypto Exchange Bitstamp.
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The company said it raised 1,717 bitcoins for approximately $ 100 million (11.1 billion yen) at an average price of approximately $ 58,226 (6,446,183 yen) per bitcoin, including fees and costs.
The purchase accounted for less than 2% of Nexon’s total available cash and cash equivalents, the company added.
Owen Mahoney, President and CEO of Nexon, stated that in the current economic environment, Bitcoin “provides long-term stability and liquidity” while maintaining the value of the company’s cash for future investment.
“Our purchase of Bitcoin reflects a disciplined strategy to protect shareholder value and maintain the purchasing power of our cash wealth,” he said.
5 / My friend, @owenmahoney, ceo @ Nexon, has been a long time Bitcoin advocate, and we had many long chats about the SoV use case of BTC, in-game currencies, and NFTs. Be on the lookout for more curious founders and CEOs who bring their personal explorations to the benefit of their businesses! ?
– Steve Jang (@stevejang) April 28, 2021
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The comments are similar to those made by electric car maker Tesla and business analytics firm MicroStrategy last year invested billions of dollars in the pioneering cryptocurrency.
Firms say traditional instruments like low-yield bonds and cash are no longer great stores of value in the face of rampant money pressures and the oncoming effects of overinflation.
Bitcoin, on the other hand, is an asset class for them that is currently flying out of their nest – with a fixed offer of 21 million, increasing the number of coins means a technical impossibility.
Meanwhile, Nexon is being scrutinized by cryptocurrencies in markets like Japan and South Korea. The former has weighed friendly Regulations Accept developments, but the latter gives mixed signals.
How CryptoSlate Some Korean ministers have reported extensively Proposal to shut down non-compliant crypto exchanges (There are over 200 of them in the country), Tax tradersand required Minister to declare capital gains earned on crypto investments. But not everyone is on board with this idea.
Bitcoin price (BTCUSD chart via TradingView)
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