The adoption of Bitcoin has been amazing over the past year. Several corporate institutions have added the cryptocurrency to their balance sheet, and more could follow the same route in the following months. Game manufacturer Nexon is the latest to invest in Bitcoin after allocating $100 million to the cryptocurrency.
Nexon purchases over 1,700 bitcoins
Publicly-listed game manufacturer Nexon announced that it had invested $100 million in Bitcoin. Thus, the move makes it the latest corporate entity to use its cash reserves to buy and hold the leading cryptocurrency.
Nexon announced yesterday that it bought 1,717 bitcoins, totaling $100 million. The firm stated that the $100 million invested in bitcoins represent less than 2% of its total cash and cash equivalents on hand.
Owen Mahoney, President and CEO of Nexon, 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.”
The company engages in the production, development and operation of online games and Virtual Worlds.
Nexon joins Tesla, MicroStrategy and others in holding bitcoins
The last few months have seen a trend emerge where corporate entities allocate a certain percentage of their cash reserves to Bitcoin. As a result, these companies and several financial institutions now see Bitcoin as a store of value and a hedge against inflation.
For instance, MicroStrategy and Tesla have invested billions of dollars in Bitcoin. To be sure, their investments have grown substantially over the last months despite BTC price dropping below the $60k mark. Additionally, Square, TIME, and several other companies have also invested millions of dollars in Bitcoin.
Most companies now view Bitcoin as an asset that provides them with long-term stability. They believe the cryptocurrency will help maintain the value of their cash for future investments.