Video game develop Nexon buys $100 million in Bitcoin
By Bob Garcia
The Japanese video company is the latest to realize the financial benefit of cryptocurrency investments
The Bitcoin ecosystem has received an important investment from Nexon, a major Japanese game developer. Following this news, this is now the latest publicly-traded company to decide to make a cryptocurrency investment of this magnitude recently. Yesterday, Nexon made an official announcement stating that it had purchased a total of 1,717 Bitcoin for an amount of nearly $100 million.
It is estimated that each Bitcoin price was $58,226 after fees, but the company has made it clear that this investment represents only 2% of its “total cash and cash equivalents on hand.” “Our purchase of Bitcoin reflects a disciplined strategy to protect shareholder value and to maintain 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 investment,” said Owen Mahoney, Nexon’s president, and CEO.
Mahoney also implied that he views Bitcoin as a form of cash with sustainable value, even though it is not widely recognized as such. Large companies in the past have also made moves similar to Nexon’s, including Tesla with a $1.5 billion investment in late 2020, MicroStrategy when it bought 21,000 Bitcoin for $250 million, and even Square, which made a $50 million purchase in October last year. According to various reports, at least 35 currently listed companies have Bitcoin on their balance sheets, indicating that it is a trend that is starting to boom. It would not be at all unusual to see other companies begin to see this behavior as normal and part of their future financial strategies.