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Gumi Bets Big on Bitcoin: 1 Billion Yen Investment to Boost Web3 Presence

Coin WorldTuesday, Feb 11, 2025 2:05 pm ET

1min read

Japanese gaming firm Gumi has announced its intention to invest in Bitcoin, aiming to strengthen its Web3 presence and enhance its blockchain services. The company, which is one of the emerging players in the blockchain business, has decided to purchase 1 billion yen worth of Bitcoin, further increasing its investment in the cryptocurrency market.

Gumi's decision to invest in Bitcoin was made during a board of directors meeting and is part of the company's strategy to improve its financial services, particularly in the area of business related to blockchains. The company believes that this investment will be more revenue productive, with income expected from the increase in value of Bitcoin as well as from staking and validating rewards.

The purchase of Bitcoin is projected to take place between February and May of 2025. Gumi will supervise its cryptocurrency assets every quarter and acknowledge any gains or losses in its financial statements. The company will provide details if the investment significantly impacts the company's financial results.

Gumi's node operation business is advancing favorably, and in the second quarter of the fiscal year ending in April 2025, the company became the first publicly listed company in Japan to act as a validator for "Babylon." This protocol allows Bitcoin, which has not been used, to be staked to secure other blockchain networks.

By investing in Bitcoin and staking via Babylon, Gumi aims to consolidate its business of node operations and extend its dominance within the Web3 ecosystem. The company considers the blockchain as a foundational element of its business in the coming years and believes that holding Bitcoin will allow it to benefit from the bullish trends in the cryptocurrency market. This decision is expected to enhance Gumi's competitiveness in the market and create additional business prospects.

Gumi is seeking new opportunities due to the emerging changes in cryptocurrency and is focused on its growth through blockchain technology. This investment is expected to generate confidence in digital assets, enabling other Japanese firms to invest in Bitcoin. The decision is expected to have a positive impact on the financial strength of the company and create additional business prospects.

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