BusinessCorporate TreasuryNexonvideo games

Video Game Publisher Nexon Buys 1,717 Bitcoin For $100 Million

Video game publisher Nexon has purchased 1,717 bitcoin for about $100 million to hedge against potential currency debasement.

Asian video game publisher Nexon has announced the purchase of 1,717 bitcoin for approximately $100 million, according to a press release.

The average price per BTC was $58,226 including fees and other expenses, and the purchase represents less than 2 percent of the company’s total cash and equivalents on hand.

“Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets,” Owen Mahoney, Nexon’s CEO, said in the release. “In the current economic environment, we believe bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”

With headquarters in South Korea and Japan, Nexon has published dozens of PC and mobile games, including “Final Fantasy 14” and “Counter-Strike Online.”

A Medium post penned by Mahoney offered additional insight into how the company views BTC as a hedge against the inflation of cash assets.

“With government spending and debt levels so high, even a small rise in interest rates would make paying down the debt even more difficult than it already is,” Mahoney wrote. “We are not making a prediction on the future of interest rates. We are, however, fiduciaries of our shareholder’s capital, and as such we need to think seriously about the future buying power of our cash in a world of potential currency debasement.”

Mahoney also drew parallels between the video game industry and the first-ever natively digital financial asset.

“25 years ago, the idea of an entertainment world centered around online, connected, virtual worlds seemed crazy,” he wrote. “Today the idea of a non-physical store of value (like gold, but virtual) that is also un-controlled by a central authority is considered fringe… We think there’s a strong chance this too will become a mainstream idea in the not-too-distant future.”

Nexon now joins the ranks of major companies like Tesla and MicroStrategy that hold bitcoin on their balance sheets.

Article First Published on Bitcoin Magazine

Related posts
ArgentinaBusinessCorporate TreasuryLatin AmericaMercadolibre

Latin American E-Commerce Giant MercadoLibre Bought $7.8 Million Of Bitcoin

MercadoLibra, a publicly-traded e-commerce giant, disclosed a $7.8 million bitcoin purchase and plans to hold the BTC indefinitely. Argentina-based e-commerce leader MercadoLibre has disclosed that it purchased $7.8 million worth of bitcoin earlier this year, with plans to hold the…
Businesscoin metricsFundingGoldman SachsInvestments

Goldman Sachs leads $15M investment round for Coin Metrics

The investment firm is reportedly preparing to make cryptocurrencies available to its clients in the second quarter of 2021. Blockchain analytics firm Coin Metrics has raised $15 million in a funding found led by financial giant Goldman Sachs. In an…
Businesscoin metricsDataGoldman Sachs

Goldman Sachs Leads $15 Million Investment Round In Bitcoin Data Provider Coin Metrics

Bitcoin data provider Coin Metrics raised $15 million in an investment round led by financial institution Goldman Sachs. According to Bloomberg, Goldman Sachs led a $15 million investment round in Coin Metrics, a bitcoin data provider for institutional investors. Goldman’s…