The South Korean online gaming company founded by billionaire Kim Jung-Ju, Nexon, said it had bought $100 million worth of bitcoin amid a rebound in the cryptocurrency, as reported by Forbes. Nexon joins a growing list of global companies, including Elon Musk’s electric carmaker Tesla, that have invested in bitcoin this year. The online gaming company’s bitcoin investment represents less than 2% of the company’s cash hoard as of December 2020.
“We believe bitcoin offers long-term stability and liquidity.”
Owen Mahoney, president and CEO of Nexon, said, “In the current economic environment, we believe bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.” Since June last year, the gaming giant has been on an investment spree. Earlier it announced its plan to invest $1.5 billion in listed entertainment companies. So far, Nexon has invested $874 million in U.S. toy maker Hasbro and Japanese game companies Bandai Namco, Konami, and Sega Sammy.
“The investment reflects a disciplined strategy for protecting shareholder value.”
While bitcoin has been volatile, Nexon’s president noted that the investment “reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets.” Kim Jung Ju, who founded Nexon in 1994, was ranked No. 3 with a net worth of $9.6 billion, up 52% from the previous year, as global lockdowns and social distancing gave people more time at home to play games, making him one of the wealthiest person in South Korea. The investment announcement just after the country’s finance minister confirmed that the country is going ahead with the tax law on crypto earnings. The crypto tax law would come into effect starting next year.