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December 5, 2022
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Nexon spends $ 100 million on Bitcoin amid “potential currency devaluation”

Nexon is the first publicly traded company in Japan to publicly announce the purchase of Bitcoin.

The company paid an average of $ 58,226 per BTC, including fees and expenses, and did not disclose the platform it used for this purchase.

This purchase of BTC represents less than 2% of Nexon’s total cash. The company said it holds more than $ 5 billion in cash and cash equivalents, mainly in the form of JPY, USD and KRW.

The company said it has no plans to “sell any of its currencies” and that it has “no pending ads related to the additional acquisition of additional digital assets”.

“Our purchase of bitcoin reflects a disciplined strategy to protect shareholder value and to maintain the purchasing power of our assets in cash,” said Owen Mahoney, president and CEO of Nexon, according to the statement.

According to him, in the current economic environment, bitcoin “offers stability and long-term liquidity, while maintaining the value of our cash for future investments”.

As reported this week, automotive giant Tesla also sent a bullish signal to the global business community, claiming that BTC has “long-term” value and could be used to resolve cash liquidity problems.

“Typically, the” money in the bank “that waits for these uses can generate some percentage points of interest with very low risk, usually by lending them to third parties. But in the current environment of historically low interest rates, these holdings generate almost no return, especially when compared to inflation. Even junk bonds – which carry greater risk and were previously known as “high yield” – have become a source of “risk without reward,” said Owen Mahoney, adding that with government spending and debt levels so high that even a small raising interest rates would make debt payment even more difficult than it already is.

According to him, the company sees BTC as a form of cash that should retain its value.

“We understand that there are risks and we continue to study them,” said Mahoney.

He added that “there is a big chance” that the non-physical reserve of value “will become a dominant idea in the not too distant future, and that many more people and companies will ask if they can rely exclusively on legacy monetary systems and instead , they must embrace the new. “

Source: CryptoNews

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