By Nermeen Nabil Khear Japanese game developer and publisher gumi Inc. announced its plan to invest one billion Japanese yen (approximately $6.6 million) in Bitcoin, following approval of the company’s Board of Directors. The company eyes the period between February and May this year to initiate its plan.
The company intends to use the acquired Bitcoin to participate in the Babylon staking protocol. With BTC looking like a global reserve asset, more companies want into the market.
gumi also intends to join Bitcoin-staking protocol Babylon as a validator, allowing it to stake its acquired BTC through Babylon’s staking service, according to the Tuesday statement.
More BTC Moving
Launched in August 2024, Babylon allows BTC holders to stake their coins to enhance the security of Proof-of-Stake (PoS) chains and earn rewards without needing third-party custody, bridges, or wrapping.
This means that gumi would be the first publicly traded Japanese firm to participate in a Bitcoin staking protocol. The company previously joined Injective’s active validator set, supporting the Layer 1 blockchain, as well as being a validator of the Oasys gaming blockchain.
Through the Bitcoin-focused plan, gumi aims to strengthen its financial position in the growing digital economy. The firm anticipates that staking through Babylon would help generate additional revenue, complementing its core businesses.
gumi will conduct quarterly fair value assessments of its Bitcoin holdings, with any gains or losses reported in its financial statements.
While not gumi’s first foray into digital assets, the announcement marks the company’s first direct holding of a cryptocurrency, here Bitcoin, on its balance sheet.
gumi, known for popular mobile games such as the Brave Frontier series and Final Fantasy Brave Exvius, is among Japanese public firms to early embrace blockchain and Web3. Its Brave Frontier series was developed in partnership with the Sui Foundation.
gumi shares (TYO: 3903) closed at ¥454 on Tuesday, up 3.65%, according to Yahoo Finance data.
Institutional Bitcoin Adoption on the Rise
More and more institutions are adopting Bitcoin as part of their reserve strategies. In Japan, Metaplanet is the pioneer; the Tokyo-listed firm has fully embraced Bitcoin as its primary treasury reserve asset since last year.
Inspired by Strategy’s (formerly known as MicroStrategy) Bitcoin playbook, Metaplanet aims to accumulate 10,000 BTC by the end of 2025 and 21,000 BTC by the end of 2026, using diverse strategies like issuing shares and bonds.
Metaplanet’s stock has soared by 4,800% in the past year, according to a recent Bloomberg report, driven by its strategy of adding Bitcoin to its treasury. The strategy has not only led to a dramatic increase in Metaplanet’s market cap and shareholder numbers but also contributed to its first operating profit in seven years.
American public companies have also joined the race, integrating BTC into their balance sheets as an inflation hedge and an alternative to traditional cash reserves. Companies like MicroStrategy have set a precedent for others.
The movement is driven by expectations of pro-crypto policies under the Trump administration.
Last month, Trump signed an executive order aimed at supporting the U.S. crypto industry and establishing a clear regulatory framework for digital assets. The goal is to provide companies with increased regulatory certainty and concrete guidance. The executive order even directs a working group to evaluate the potential for a national stockpile of digital assets.
Metaplanet CEO Simon Gerovich stated that if President Trump establishes a strategic Bitcoin reserve in the U.S., Japan and other Asian nations will likely follow suit. Gerovich suggests that Japan often looks to the U.S. as a “big brother” and tends to emulate its policies.
Gerovich also speculated that developing countries could adopt Bitcoin to strengthen their currencies. Trump’s pro-crypto agenda could increase Bitcoin demand in Japan, according to him.
The post Japan’s Game House gumi to Acquire ¥1 Billion in Bitcoin and Join BTC Staking appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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