Nexon, a major Japanese gaming developer, and a publicly listed company, reportedly buys 1,717 Bitcoins (BTCs), which is worth around US$100 million. After paying the fees, it cost the company an average BTC price of US$58,226 each. The company noted that this investment represents 2% of their “total cash and cash equivalents on hand.”
Owen Mahoney, the President and CEO of Nexon, said:
“Our purchase of Bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets. In the current economic environment, we believe Bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”
Mahoney added that Bitcoin is a “form of cash likely to retain its value, even if it is not yet widely recognized as such.”
Nexon is the new entrant in the club of the publicly traded companies that have been bullishly buying Bitcoins. This list is led by MicroStrategy, which started the trend back in August 2020 when it bought US$250 million worth of Bitcoins (21,000 BTCs). The next big purchase was done by yet another corporate giant, Square, which bought US$50 million worth of Bitcoins. In fact, Elon Musk-led Tesla Motors also made an investment of US1.5 billion in December 2020.
As per BitcoinTreasuries, there are around 35 publicly traded companies that own Bitcoin and show it on their balance sheets. Nexon is not the first major corporate giant to have invested in cryptocurrencies. In 2016, Japan recognized digital assets as legal currency.
Nexon is not the first major Japanese firm to embrace crypto, with the country passing laws recognizing digital assets as legal currency in 2016.
It was SBI Holdings that first announced in 2020 that it is going to launch a bank-backed virtual currency exchange. The announcement came just after their made investments in Ripple and bitFlyer (a local trading platform). A US$3 million investment was announced by the GMO Internet Group in BTC mining, back in 2017.
Nexon was founded in the year 1994. It produced, developed, and operated online games and virtual worlds. In December 2011, Nexon went public on the Tokyo Stock Exchange. The company currently operates over 50 online games, which are played in over 190 countries.
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