Nexon Invested Millions of dollars into Bitcoin
Japanese game developer Nexon made a significant investment into bitcoin. On April 28, Nexon revealed that it purchased 1,717 BTC for roughly at an average price of $58,226 each after fees. The game developer noted the investment represents less than 2% of its total cash and cash equivalents on hand.
This company can produce, develop, as well as operate online games and virtual worlds. The game developer went public on the Tokyo Stock Exchange in 2011. At the moment, it operates more than 50 online games that can be played in more than 190 countries.
Nexon decided to purchase bitcoin to protect shareholder value. It also wants to maintain the purchasing power of its cash assets. The company believes that in the current economic climate, bitcoin offers long-term stability as well as liquidity, while maintaining its cash for future investments. Owen Mahoney, who is the current president and CEO of Nexon also mentioned another advantage. He noted that bitcoin is a form of cash likely to retain its value, despite its status.
Bitcoin and world-famous companies
Nexon’s decision to purchase the world’s largest cryptocurrency follows a wave of large bitcoin allocation from famous companies. Nexon is not the only major company from Japan to invest in the world’s most famous cryptocurrency. Several years ago, GMO Internet Group announced a $3 million investment into bitcoin mining.
MicroStrategy purchased 21,000 BTC for $250 million in 2020, followed by Square. The company founded by Jack Dorsey purchased 4,709 BTC for roughly $50 million in October. He supports cryptocurrencies and Dorsey’s company CashApp allows its users to invest in BTC.
Tesla also joined the list of famous companies that invested in bitcoin, when it invested $1.5 at the end of 2020. As it turned out, it was a smart decision and the company made a lot of money thanks to that move. In the first quarter of 2021, the company sold a portion of its bitcoin holdings, and it generated net proceeds of $271 million.
The carmaker also accepts the largest cryptocurrency in the world as a form of payment. When it comes to a refund, Tesla reserves the right to choose to pay customers back in U.S. dollars or BTC. It also has the right to refund the customer in U.S. dollars at the exact price that particular cryptocurrency was worth at the time of purchase.
Bitcoin Treasuries claim that 35 publicly traded companies currently hold this cryptocurrency on their balance sheets.
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