Japanese Gaming Giant Nexon Invests $100 Million in Bitcoin (1,717 BTC)
Online game provider Nexon announced that it had purchased $100 million worth of Bitcoin, representing less than 2% of Nexon’s total cash and cash equivalents on hand.
By acquiring 1,717 BTC at an average price of $58,226, Nexon has become the first publicly-traded company in Japan to do so.
Nexon is a giant gaming platform with a $30 billion market cap. It is the largest gaming company in Korea, 2nd largest in Japan, and 4th largest in Asia. This investment, according to Steve Jang of Kindred Ventures, “starts a trend in Asia that other public companies will take seriously.”
The fact that Nexon’s bitcoin investment is a currency hedge rather than speculation will drive other companies to look at Bitcoin as a hedge against inflation as well.
Nexon said it intended to guard itself against a potential drop in the value of non-digital currencies in case of inflation, seeing Bitcoin as a “form of cash likely to retain its value, even if it is not yet widely recognized as such.” Owen Mahoney, Nexon’s chief executive officer, said in a statement,
“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.”
He further noted, in the current historically low-interest-rate environment, the “cash in the bank” generates almost no return, and junk bonds which were formerly known as “high yield,” have now become a source of “rewardless risk. ”
Bitcoin could be just the beginning for Nexon, as it is also exploring multiverse possibilities and what virtual goods mean in a crypto world.
As Mahoney said, a couple of decades ago, “the idea of an entertainment world centered around online, connected, Virtual Worlds seemed crazy,” but today, the idea is mainstream.