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Significant Japanese game developer Nexon has become the latest publicly-listed firm to make a prominent investment in bitcoin. As per a press release, Nexon acquired 1,717 Bitcoin for approximately 11 billion yen ($100 million) at an average of $58,226 per bitcoin. Nexon illustrated that the current investment accounts for around 2% of the company’s total cash. Established in 1994, Nexon defines itself as developing, producing, and operating virtual worlds and online games. In December, the firm went public on the Tokyo Stock Exchange in 2011 and recently runs over 50 online games in more than 190 nations.
Nexon’s investment accompanies a wave of massive bitcoin allocations from globally leading firms, with MicroStrategy starting the trend in August 2020. It bought 21,000 BTC for $250 million, accompanied by Square with a $50 million investment in October. Moreover, Tesla invested $1.5 million at the end of 2020. As per BitcoinTreasuries, 35 publicly traded companies now hold Bitcoin on their balance sheets. Nexon is not the first significant Japanese firm to adopt crypto, with the country passing laws identifying digital assets as legal currency in 2016.
Nexon’s President says Acquiring Bitcoin as a Part of Disciplined Strategy
Furthermore, Nexon’s President and CEO, Owen Mahoney, contended, “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.” Moreover, Mahoney illustrated that Bitcoin is a form of cash probably to retain its value, even if it is still not identified as such.
The latest declaration from the Japanese giant Nexon appeared after Chinese app developer Meitu disclosed that about $100 million investment in several crypto assets involving Bitcoin and Ethereum. Meitu acquired approximately $40 million worth of Ethereum and Bitcoin during the second week of March 2021. Moreover, it stimulated its cryptocurrency portfolio with the extension of 386 Bitcoin and 16,000 Ethereum on 17 March.