Gumi, a Japanese gaming and Blockchain company, announced in an open letter on Feb. 10, a $6.5 million investment in Bitcoin.
The investment will occur from February to May and will represent 4.3% of Gumi’s $150 million market cap. Gumi shares rose by 3.65% following the news.
In the second quarter, the company revealed it was the first Japanese publicly-listed company to be a validator of BTC stake protocol Babylon. This will end in April 2025.
Babylon allows users to stake Bitcoins in order to receive rewards. Staked BTC can be used to secure other protocols and create a layer of Bitcoin Secured Networks. The staked BTC is used as security for other protocols, creating a Bitcoin Secured Networks layer.According to DefiLlama, the protocol is locked at a total value of over $5 billion (TVL). data.
Gumi’s Board of Directors approved the purchase as part of its strategy to strengthen financial operations within its blockchain-focused business, which has become a central pillar of the company’s growth.
The following is a list of Babylon’s website, Gumi has 7.99 BTC — worth over $770,000 — staked on the platform, earning a 5% commission.
BTC stake
Gumi expects to generate new revenues from the capital appreciation of Bitcoins and by using them for stakes.
The firm is pursuing its Web3 goals, which include a greater presence in Decentralized Finance (DeFi), and Blockchain-based Financial Services.
Gumi.com is a website worth noting reveals The company has already become a node-operator for eight different blockchains including Ethereum, Sui and Avalanche.
A blockchain division is also part of the Japanese game publisher, which is in charge of efforts for mixing non-fungible tokens with games. Gumi has reported that gaming companies Capcom Double Jump as partners.
Gumi’s website also highlights investments in the NFT marketplace OpenSea and the gaming-focused decentralized organization Yield Guild Games.
The company will conduct quarterly assessments of Bitcoin and add gains or loss to its financial reports. This company also announced that it would disclose immediately any major financial impact of this investment.
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