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Nexon Denies Media Claims of Bithumb Acquisition

UTC by Steve Muchoki · 3 min read
Nexon Denies Media Claims of Bithumb Acquisition
Photo: Depositphotos

As a result of the Nexon confirmation, Bithumb will remain a sole entity.

South Korean-Japanese video game publisher Nexon Co Ltd (TYO: 3659) has finally clarified claims that it is set to acquire leading South Korean crypto exchange Bithumb for a whopping $460 million. Speaking to news outlet Cointelegraph, a Nexon representative said that the company “has not invested in Bithumb and has no plans to acquire that company.” Reportedly, the sale discussions were said to have been ongoing since August last year according to a South Korean media outlet.

Previously, it was noted that the sale process had been delayed due to ongoing Bithumb fraud investigations. As Coinspeaker had previously reported, Bithumb Korea chairman Lee Jung Hoon has been under police investigation for the BXA token fraud allegations.

However, the investigations have not deterred the firm from being one of the largest crypto spot exchanges in the world. Notably, Bithumb is currently ranked position six with an approximate trading volume of $3 billion.

As a result of the Nexon confirmation, Bithumb will remain a sole entity. Nexon shares closed Friday market trading at 3260 Japanese Yen, up 2.52%. Founded 27 years ago, Nexon has grown to a conglomerate of subsidiaries with global touch in its online games.

Notably, its shares significantly benefited from the coronavirus onset as more people obeyed stay at home order. Market data provided by MarketWatch shows Nexon shares rallied over 100% during the height of the pandemic. Nexon shares open the year on a positive note as they are up approximately 2.52%.

The company has a market valuation of approximately 2.89 trillion Yen with 886.6 million outstanding shares.

What Next After Bithumb Acquisition By Nexon Failure

Having experienced a sharp uptick in daily trading volume in the past 24 hours, Bithumb is positioned to benefit from the ongoing global crypto adoption. As a leader in an emerging market, Bithumb revenue is set to skyrocket as it registers more spot traders by the day.

Notably, the firm has a huge room of improvement in comparison to the Binance ecosystem that has a recorded daily trading volume of approximately $24 billion. However, its success rate will significantly depend on how it deals with ongoing fraud investigations and also customers’ data protection.

On the other hand, Nexon will continue to offer online games to its global subscribers. Apparently, the firm was noted to be the largest game company in South Korea and the third-largest game company in Asia outside Japan after Tencent and NetEase in China.

Mid last year, Nexon announced that it intends to invest approximately $1.5 billion in other listed entertainment companies. The company noted that it is a quest to diversify its investment portfolio as the global demand significantly shift to online entertainment.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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