Average price $58,226! Nexon, the parent company of KartRider, buys $100 million worth of Bitcoin, CEO: Non-physical value storage will become mainstream

South Korea's well-known online game company Nexon has become the latest publicly traded company to include Bitcoin on its balance sheet. The CEO believes that Bitcoin can protect shareholder value while maintaining the purchasing power of cash assets, and this is not Nexon's first foray into the crypto space.

Nexon, founded in South Korea in 1994, is an online game company with popular titles such as MapleStory, KartRider, AxE: Alliance vs Empire, V4, and Sudden Attack, all of which are highly successful game products of the company.

Nexon went public on the Tokyo Stock Exchange in 2011 and was even included in the Nikkei 225 index last year.

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Nexon Buys $100 Million Worth of Bitcoin

According to a press release, Nexon has purchased Bitcoin worth 11 billion Japanese yen, with the following details:

• Purchase Cost: $100 million
• Number of Bitcoins Purchased: 1,717
• Average Purchase Price: $58,226 and 6,446,183 Japanese yen

The funds invested this time account for less than 2% of Nexon's cash and cash equivalents as of December last year.

Nexon CEO Owen Mahoney stated:

Our purchase of Bitcoin represents 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 preserving the value of our cash for future investments.

Currently, data platforms that track public companies' Bitcoin purchases have some inconsistencies. According to Bitcoin Treasuries and CoinGecKo data, including Tesla's ranking after selling 10% of its holdings in the first quarter:

Why Did Nexon Buy Bitcoin?

In addition to the press release, CEO Owen Mahoney believes that only a few public companies globally publicly purchase Bitcoin, which is why he felt the need to explain this further. Therefore, a more detailed explanation was also posted on the Blog.

He claims that in the current environment of historically low-interest rates, even junk bonds, previously considered high-yield and risky, now offer almost no return and come with risks, and the amount of U.S. dollars printed has increased by 40% since last year.

Therefore, as fiduciaries of shareholder capital, Nexon must seriously consider the future purchasing power of cash. They view Bitcoin as a tool to preserve the value of cash, even though it has not yet gained widespread acceptance, for the following reasons:

• Purchasing Power: Bitcoin's total supply is only 21 million
• Network Effect: Its value will increase with more attention and adoption
• Liquidity and Convenience: Easy to hold, transfer, trade, and low holding costs
• Innovation: Bitcoin and underlying technologies are permeating various fields, such as payments, digital collectibles, and public companies like Nexon

Owen Mahoney concluded:

Currently, non-physical, non-government-controlled value storage tools like digital gold are generally seen as non-mainstream. Rational individuals may question its safety, but we believe it is likely to become mainstream in the near future. More people and companies will start to consider whether they can fully rely on the traditional monetary system or adopt a new monetary system.

Nexon's Past Ventures

This is not Nexon's first foray into the crypto space. Previously reported, in 2017, the company acquired a 65.19% stake in Korea's first cryptocurrency exchange, Kobit, for 91.3 billion Korean won (approximately $80 million).

The following year, they purchased an 80% stake in Europe's cryptocurrency exchange Bitstamp for 434.9 billion Korean won (approximately $400 million); and earlier this year, they also planned to acquire a 65% stake in local cryptocurrency exchange Bithumb for about 500 billion Korean won ($460 million).