$40M of Nexon’s $100M bitcoin investment poofed in the last four months

    
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this whale is all of us

So Nexon’s had an interesting financial quarter. Its revenues for Q2 were down quarter over quarter, in line with expectations. Why? Well, it turns out to be several reasons.

First, Nexon notes that its incomes underperformed thanks to that weird investment it made last spring into bitcoin – to the tune of $100M US. At the time, the company said the cryptocurrency would offer it “long-term stability and liquidity,” but instead, this quarter the company reports that it “recognized a revaluation loss of ¥4.5 billion due to movements in the market price of bitcoin.” That’s a loss of around $40M, or 40% of its investment in bitcoin just in the last four months. Yikes.

Second, MapleStory – one of the company’s long-time profit-drivers – has been underperforming in Korea; GIbiz chalks it up to ongoing upset within the core MapleStory community over a lack of lockbox odds transparency. Seriously.

The company doesn’t appear particularly worried, however, thanks to the surge in FIFA Online and The Kingdom of the Winds: Yeon, plus the large roster of inbound new games we previously reported on, including Project Magnum, Project HP, and Mabinogi Mobile.

Source: Nexon, press release, GIbiz
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Adam Russell

Aside from bitcoin being bogus,
I think corporations shouldnt be allowed to speculate in the markets. Corp A invests in corp B which raises B’s price, then corp B invests in A which raises A’s price. Now you have a bubble forming. Circular speculations bubble. Bubbles are really bad for stability.

If you have spare cash then invest it in your own company or return it to shareholders.

Gipfeli
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Gipfeli

poof

Turing fail
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Patreon Donor
Loyal Patron
Turing fail

Aside from benefiting ransomware gangs, cryptocurrency has the added benefit of contributing to making our planet hotter. What’s not to like?

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Trendsday Sean

Can we stop pretending bitcoin et. al. are actual wealth now? Blockchain is good for many things, but libertarian dreams of wealth independence isnt’t one of them.

It is kiiind of lol that it happened to Nexon though.

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Oleg Chebeneev

It will be a loss if they are stupid enough to sell it now.
If they hold it long enough, they return all the lost money and get big profit. Its inevitable that Bitcoin gets above $100k mark per

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wjowski

It’s literally imaginary money, somehow made even more of unicorn farts and pixie dandruff than the stock market.

Leo
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Leo

I think they should fire the guy that said cryptocurrency has long term stability

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Bruno Brito

HAHA.

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Ardra Diva

China is basically fighting a war against crypto, so they are the single biggest contributor to Bitcoin devaluation. Also the global chip shortage has made graphics cards nearly impossible to get as many of us have experienced.

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Paul

Whilst bad – to be fair that’s described as “a revaluation loss” which means they still hold all the bitcoin – presumably hoping that the value will return back to at least the level they paid for it, so given the volatility in the crypto market it could well reverse…

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Hikari Kenzaki

Meanwhile, the artwork in this ad is just making me miss MapleStory 2 instead of making me want to play either MS1 or MSM

msm.png
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McGuffn

at least nexon is getting good publicity for its money?

Spex
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Kickstarter Donor
Spex

I was thinking the same thing. I miss maple2 :(