South Korean-Japanese video game publisher NEXON has announced its recent business move to spend $100 million to purchase more than 1,700 Bitcoin (BTC), following the lead of companies like Tesla and MicroStrategy that used corporate cash to shore up the number of BTC they have on their balance sheets.
Through a press release, NEXON shared they were able to acquire 1,717 Bitcoins with an average unit price of $58,226, including relevant fees and expenses for the purchase.
Meanwhile, the company has also said that the $100 million they spent represent just less than 2% of their total cash and cash equivalents at hand.
A show of trust for Bitcoin
NEXON CEO Owen Mahoney was cited by CoinDesk in saying that their “purchase of Bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets.”
Moreover, in what seemed to be a show of confidence and trust to the leading cryptocurrency, Mahoney added, “In the current economic environment, we believe Bitcoin offers long term stability and liquidity while maintaining the value of our cash for future investments.”
The above statements of the company official should answer the question as to why they spent an insane amount of money on a digital currency.
As it joins the ranks of Tesla and MicroStrategy in this particular kind of business strategy, it helps to know more about the company.
NEXON was founded in 1994 as a company that engaged in the production, development, and operation of online games and Virtual Worlds. It was publicly listed first in Tokyo Stock Exchange back in 2011, then on JPX400 in 2015, and the Nikkei Stock Index 300 in 2017. In 2020, NEXON was added to the Nikkei 225.
Some notable game franchises associated with the company include MapleStory, KartRider, and Dungeon Fighter.
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