Tokyo-listed gaming giant Nexon invests $100 million in Bitcoin (BTC)

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South Korean-Japanese games maker Nexon today announced a $100 million investment in bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, according to a statement.

1/ Nexon just announced a $100 million purchase in #Bitcoin. It is the first major publicly traded company in Japan and Korea to buy cryptocurrencies to pad its coffers. This is very important for several reasons. https://t.co/r38lBtx29M

– Steve Jang (@stevejang) 28. April 2021

The company is listed on the Tokyo Stock Exchange (TSE: 3659) and specializes in online games for PC and mobile devices. It currently distributes more than 50 games, including hits like MapleStory and Crazyracing Kartrider.

Earlier, Nexon was rumored to be one of the candidates to buy cryptocurrency exchange Bitstamp.

Stalking Bitcoin

The company said it received 1,717 bitcoins worth about $100 million (¥11.1 billion) at an average price of about $58,226 (¥6,446,183) per bitcoin, including fees and expenses.

The purchase represented less than 2% of Nexon’s total cash position, the company added.

Owen Mahoney, president and CEO of Nexon, explained that bitcoin provides long-term stability and liquidity in the current economic climate and keeps the value of the company’s cash flow free for future investments.

Our purchase of bitcoin reflects a disciplined strategy to protect shareholder value and preserve the purchasing power of our cash, he said.

5/ my friend, @owenmahoney, CEO of Nexon, has long been a supporter of bitcoin and we’ve had long conversations about using BTC, gaming currencies and NFT in SoV. look forward to startups and curious CEOs using their personal research to benefit their companies!

– Steve Jang (@stevejang) 28. April 2021

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Steps

The comments are similar to those made last year by electric car manufacturer Tesla and business intelligence firm MicroStrategy, which have invested billions of dollars in the cryptocurrency pioneer.

Companies believe that traditional instruments, such as low-interest bonds and cash, are no longer good store of value in light of rampant money printing and the looming effects of excessive inflation.

For them, bitcoin in turn represents an asset class that has just flown the nest: The fixed stock of 21 million pieces means that expanding the number of pieces is technically impossible.

Nexon’s action comes in a context of increased interest in cryptocurrencies in markets like Japan and South Korea. The former has established rules favorable to the acceptance of development, but the latter sends contradictory signals.

As previously reported, some Korean ministers are proposing to shut down non-compliant cryptocurrency exchanges (there are more than 200 in the country), tax traders, and require ministers to report capital gains from cryptocurrency investments. But not everyone shares this opinion.

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