Major Japanese game developer Nexon has become the latest publicly traded company to make a significant investment in Bitcoin.
On April 28, Nexon announced that it had purchased 1,717 BTC for approximately $ 100 million at an average price of $ 58,226 each net of fees. The company noted that the investment represents less than 2% of its “total available cash and cash equivalents”. Owen Mahoney, Nexon’s president and CEO, stated:
“Our Bitcoin purchase reflects a disciplined strategy to protect shareholder value and maintain the purchasing power of our cash. In the current economic environment, we believe that Bitcoin provides long-term stability and liquidity while preserving the value of our cash for future investments. “
Mahoney added that Bitcoin is a “form of cash that is likely to retain its value even if it is not yet widely recognized as such”.
Nexon’s investment follows a wave of large bitcoin allocations from world-leading companies, with MicroStrategy kickstarting the trend in August 2020 when it bought 21,000 BTC for $ 250 million, followed by Square with a $ 50 million purchase in October , and Tesla with an investment of $ 1.5 billion. end of 2020.
According to BitcoinTreasuries, 35 listed companies currently have Bitcoin on their balance sheets.
Founded in 1994, Nexon describes itself as producing, developing and operating online games and virtual worlds. The company went public on the Tokyo Stock Exchange in December 2011 and currently operates more than 50 online games that can be played in more than 190 countries.
Nexon isn’t the first major Japanese company to embrace crypto, and the country passed laws in 2016 recognizing digital assets as legal tender.
Later that year, major financial services company SBI announced plans to launch a bank-backed virtual currency exchange, following investments in Ripple and the local trading platform bitFlyer. Japan’s GMO Internet Group also announced a $ 3 million investment in Bitcoin mining in 2017.