Asian companies accelerate shift to Bitcoin as price surges

TOKYO — Companies in Asia are starting to guess on cryptocurrencies, with South Korean gaming large Nexon following the lead of companies such as Tesla and digital funds specialist Square, 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 mean price of about $58,226 per bitcoin, together with charges and bills, for round $100 million.

The firm, which has operations in Japan and is listed on the Tokyo Stock Exchange, was based in 1994 by South Korean billionaire Kim Jung-ju. It is a serious developer of PC and cellular video games, with avid followers in international locations such as South Korea, Japan, and China.

“Our buy of Bitcoin displays a disciplined technique for shielding shareholder worth, and for sustaining the buying energy of our money property,” President and CEO Owen Mahoney mentioned in a press release. “In the present financial surroundings, we imagine Bitcoin affords 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 up to $100 million value of cryptocurrency with money reserves.

In a press release, 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] also can serve as a diversification to holding money in treasury administration.” The assertion went on to say “the board considers this an illustration to buyers and stakeholders that the group has the imaginative and prescient and willpower to embrace technological evolution, and therefore [is] getting ready its foray into the blockchain trade.”

The two companies are following within the footsteps of electrical automotive maker Tesla, as a rising variety of international companies put money into cryptocurrencies.

In February, Tesla introduced the acquisition of $1.5 billion in Bitcoin and famous that its board authorised 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 preserve enough working liquidity.”

Tesla CEO Elon Musk, who has been an outspoken supporter of cryptocurrencies, just lately revealed that the corporate offered 10% of its holdings of Bitcoin to display its liquidity. The firm reported report earnings for the January via March interval, with a $101 million accounting increase from the sale.

Meanwhile, Square, led by Twitter co-founder Jack Dorsey, as effectively as U.S. enterprise software program maker MicroStrategy have additionally made important digital forex purchases. Some companies have begun accepting them as a type of cost.

Bitcoin began surging in direction of the top of 2020 as buyers poured into the market, pushing its price up almost 300% final 12 months. It continued to soar this 12 months, hitting an an all-time excessive of over $63,000 in early April, however considerations over its volatility stay, with some buyers stating 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.

Recommended For You

About the Author: Daniel