Hailing from Japan, game creator and distributor gumi Inc. has made headlines. announced its plan to invest one billion The company has commitment from its Board of Directors to plow approximately ¥1 billion (around $6.6 million) of yen into Bitcoin, slated to begin between February and May.
Gumi is gearing up to leverage the Bitcoin they acquire by getting involved in the Babylon staking protocol, as Bitcoin’s role as a major reserve asset piques the interest of more businesses.
gumi Intentions to become a part of the Babylon staking protocol are on the agenda, allowing gumi to validate and stake their freshly acquired Bitcoin through Babylon's setup.
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Launched in August 2024, Babylon allows BTC holders As a validator, they get to stake their coins to improve the security of Proof-of-Stake networks, earning rewards while circumventing the need for external custody or bridging.
By signing up for the Bitcoin staking protocol, gumi would mark its place as a pioneer among publicly listed Japanese companies. Previously, they’ve been validators for both the Layer-1 blockchain Injective and the Oasys gaming blockchain.
This Bitcoin-driven venture is part of gumi's strategy to bolster its footing in the burgeoning digital market. They expect that participating in Babylon's staking will bolster their revenue streams alongside their core business operations.
Every quarter, gumi plans to evaluate the fair market value of their holdings. Bitcoin holdings Financial performance will account for any Bitcoin valuation gains or losses.
Though this isn’t gumi's initial step into digital finance, it marks their inaugural direct cryptocurrency, specifically Bitcoin, holding on their financial books.
Gumi, renowned for successful mobile titles like the Brave Frontier series and Final Fantasy Brave Exvius, stands among the vanguard of Japanese firms exploring blockchain and Web3, in collaboration with the Sui Foundation.
gumi’s stocks, traded on the Tokyo Stock Exchange (TYO: 3903), climbed to ¥454 on Tuesday, experiencing a 3.65% uptick as per Yahoo Finance.
The trend of institutions integrating Bitcoin into their reserves is gaining traction.
Especially in Japan, where Metaplanet is at the forefront, adopting Bitcoin as a primary reserve asset in their treasury since last year.
Following the ideas of MicroStrategy (now known as Strategy), Metaplanet envisions securing 10,000 BTC by the close of 2025 and reaching 21,000 BTC by the end of 2026 using various tactics such as issuing shares and bonds.
A Bloomberg report flags that Metaplanet’s stocks have skyrocketed by 4,800% over the past year, thanks to their newfound Bitcoin reserves, spiking their market value, shareholder base, and finally leading to operational profits after a long seven-year wait.
U.S. public companies are also in the mix, weaving Bitcoin into their financial strategies as a guard against inflation and a substitute for conventional cash reserves, with MicroStrategy setting an example for many.
This motion is steered by the anticipation of Bitcoin-positive policies under Trump’s administration.
In the prior month, Trump cemented an executive order intended to support the American crypto landscape with clear regulatory outlines for digital assets, aiming to lend a hand with regulatory certainty.
Metaplanet’s CEO, Simon Gerovich, hinted that should Trump establish an essential Bitcoin stockpile in the U.S., Japan and Asian countries might mirror the strategy.
Gerovich further speculated that lesser-developed nations might embrace Bitcoin to solidify their monetary systems due to Trump’s pro-crypto stance, seen as a catalyst for increased Bitcoin demand in Japan.
