Nexon, a South Korean–Japanese entertainment software development company mainly engaged in the production, development, and delivery of online games, has recently bought $100 million worth of bitcoin.
According to an official press release published by the online game publisher on Wednesday, Nexon purchased a total of 1,717 bitcoins valued at an average purchase price of $58,226 per unit, including all fees and expenses.
Although the bitcoin purchase is huge, the company’s largest-ever digital currency purchase, Nexon stated that it represents less than 2% of its total cash and cash equivalents on hand.
Nexon noted that this bitcoin purchase was made in a bid to shield itself against the terrible consequences that are often associated with inflation.
The online game publisher acknowledged that bitcoin is a better store of value than fiat currencies.
Speaking on the purchase, Nexon’s CEO, Owen Mahoney, said,
Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets. 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 this recent purchase, Nexon joins the rapidly growing number of global firms that are embracing bitcoin and its underlying tech, Blockchain technology.
Bitcoin Adoption Continues Amid Volatility Risks
Bitcoin has long been associated with extreme volatility, one of the major reasons people are hesitant to join the trend.
However, several multinational companies have seen beyond bitcoin’s volatility risks and have a firm conviction that this digital asset is better than fiat.
Companies like MicroStrategy, Square, and Tesla have all made huge bitcoin purchases, with some using it as their primary reserve asset and others accepting it as a form of payment.
Tesla’s $1.5 billion bitcoin purchase had made waves to the point that it caused the asset’s price to increase within a few minutes. It had also been a source of motivation for some other companies who are now more interested in investing in bitcoin.
