TOKYO — Corporations in Asia are starting to wager on cryptocurrencies, with South Korean gaming big Nexon following the lead of firms akin to Tesla and digital funds specialist Sq., with a $100 million allocation into Bitcoin.
On April 28, Nexon mentioned that it has shifted a part of its money into the cryptocurrency, buying 1,717 bitcoins at a median worth of about $58,226 per bitcoin, together with charges and bills, for round $100 million.
The corporate, which has operations in Japan and is listed on the Tokyo Inventory Change, was based in 1994 by South Korean billionaire Kim Jung-ju. It’s a main developer of PC and cellular video games, with avid followers in nations akin to South Korea, Japan, and China.
“Our buy of Bitcoin displays a disciplined technique for safeguarding shareholder worth, and for sustaining the buying energy of our money belongings,” President and CEO Owen Mahoney mentioned in an announcement. “Within the present financial atmosphere, we imagine Bitcoin presents long-term stability and liquidity, whereas sustaining the worth of our money for future investments.”
Nexon mentioned the Bitcoin buy represents lower than 2% of the corporate’s whole money and money equivalents available.
Earlier in April, Meitu, the developer of China’s wildly in style beauty-enhancing picture app, Meitu Xiuxiu, revealed that it had gathered a complete of about $100 million value of Bitcoin and Ethereum. The Hong Kong-listed firm had beforehand introduced plans to purchase as much as $100 million value of cryptocurrency with money reserves.
In an announcement, the corporate mentioned: “The board believes cryptocurrencies have ample room for appreciation in worth, and by allocating a part of its treasury in cryptocurrencies [they] may also function a diversification to holding money in treasury administration.” The assertion went on to say “the board considers this an indication to traders and stakeholders that the group has the imaginative and prescient and willpower to embrace technological evolution, and therefore [is] making ready its foray into the blockchain trade.”
The 2 firms are following within the footsteps of electrical automobile maker Tesla, as a rising variety of world firms spend money on cryptocurrencies.
In February, Tesla introduced the acquisition of $1.5 billion in Bitcoin and famous that its board accredited an replace to the EV maker’s funding coverage, which says will present “extra flexibility to additional diversify and maximize returns on our money that isn’t required to keep up satisfactory working liquidity.”
Tesla CEO Elon Musk, who has been an outspoken supporter of cryptocurrencies, lately revealed that the corporate bought 10% of its holdings of Bitcoin to reveal its liquidity. The corporate reported report earnings for the January via March interval, with a $101 million accounting increase from the sale.
In the meantime, Sq., led by Twitter co-founder Jack Dorsey, in addition to U.S. enterprise software program maker MicroStrategy have additionally made important digital forex purchases. Some firms have begun accepting them as a type of fee.
Bitcoin began surging in direction of the tip of 2020 as traders poured into the market, pushing its worth up almost 300% final yr. It continued to soar this yr, hitting an an all-time excessive of over $63,000 in early April, however considerations over its volatility stay, with some traders declaring that Bitcoin is a speculative funding. Berkshire Hathaway CEO and well-known U.S. investor Warren Buffett has repeatedly mentioned he believes Bitcoin has no underlying worth.