Japan Game Developer Nexon Invests $100mln in Bitcoin
Nexon, Japan headquartered game developer, is the latest publicly traded entity to invest a considerable amount in Bitcoin (BTC). The firm revealed that it had bought 1,717 Bitcoins for about $100 million, translating to an average price of $58,226 per Bitcoin after fees.
The firm pointed out that the investment accounts for less than 2% of the “total cash and cash equivalents on hand.” Owen Mahoney, 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 further stated that the numero uno crypto is a “form of cash likely to retain its value, even if it is not yet widely recognized as such.”
Nexon’s purchase of Bitcoin follows a plethora of investments in the king of crypto by renowned enterprises across the globe. Microstrategy started the trend in August 2020 when it bought 21,000 Bitcoin for $250 million. Payment processing firm Square followed suit with an investment of $50 million in October 2020.
Tesla invested $1.50 billion in Bitcoins by the end of 2020. As per data provided by Bitcoin Treasuries, 35 listed firms currently possess Bitcoin on their balance sheets.
Established in 1994, Nexon calls itself as a developer and operator of online gaming platforms. The firm got listed on the Tokyo Stock Exchange in December 2011 and currently runs over 50 online games that can be played in over 190 countries.
Nexon is not the foremost top Japanese enterprise to adopt cryptocurrency after the government passed legislation endorsing cryptocurrencies as legal tender in 2016.
Again in that year, renowned Japanese financial service provider SBI revealed its intention to establish a bank-backed cryptocurrency exchange. The firm had already invested in Ripple and domestic crypto trading platform bitFlyer. The country’s GMO Internet Group also revealed a $3 million investment in Bitcoin mining four years back.