This sale represents in advance 2% of the treasury of the video game company. According to the company, in the current economic environment, bitcoin offers more excellent long-term stability.
Nexon Co Ltd, a South Korean-based company that develops and distributes online video games, announced on April 28 the purchase of USD 100 million in bitcoin.
The information came to light through a brief statement. The publication highlights that the firm purchased 1,717 bitcoins at an average price of around $ 58,226. The purchase includes fees and expenses.
According to the press release, this purchase represents less than 2% of Nexon’s total cash and its available cash equivalents. Owen Mahoney, President and CEO of Nexon, exposed his opinion on the matter:
“Our bitcoin purchase reflects a disciplined strategy to protect shareholder value and to keep the purchasing power of our cash assets. In today’s economic environment, we believe that bitcoin offers long-term stability and liquidity by maintaining the value of our cash for future investments.”
This move the company made follows that of other companies such as MicroStrategy and Tesla. These companies have been acquiring bitcoin to protect their capital from inflation effects.
With this purchase, Nexon positions itself in the ranking of the ten companies that have bitcoin in its treasury. NEXON is a company that appears on the Tokyo Stock Exchange since 2011 and the Nikkei 300 stock index since 2017. The company also found a spot in the Nikkei 225 index in 2020.
Bitcoin is a Safe Haven Asset against the Issuance of fiat Money
Arbitrary monetary issuance and the lack of control coming from central banks is something only the inhabitants of Latin American countries know at their best, but not so for North American residents. The journalist Max Keisser exposed his ideas on the matter:
“where it is still not understood what happens when you encourage hyperinflation and your currency turns to garbage.”
In several nations of the world, such as Venezuela, Argentina and Zimbabwe, uncontrolled money printing has created the perfect disaster within their economies. A similar effect could happen in the United States given the historic injection of liquidity from the Federal Reserve to finance hundreds of companies and millions of Americans in times of paralysis and increased unemployment due to the COVID-19 pandemic.
Bitcoin’s potential as a safe place of value appeared in a study by Coin Metrics. The report shows that since the end of 2020, the position of investors has been mutating. There he assures that the predictability and transparency of Bitcoin’s monetary policy give a potential refuge to the currency from inflationary environments.
Although there is no official list, precious metals such as gold and currencies such as the dollar seem to be assets. In this case, bitcoin can also play its role as a haven asset against inflation that hits the population’s purchasing power with limited economic resources.
Bitcoin does not belong to governments or any state, and its use is active worldwide, regardless of geographical and political obstacles.
By: Jenson Nuñez