Japanese Gaming Firm Gumi Bolsters Web3 Strategy with $7 Million Bitcoin Purchase

Japanese mobile gaming company Gumi Inc. has completed a ¥1 billion ($7 million) Bitcoin purchase, acquiring 80.352 BTC at an average price of ¥12,430,257 ($86,500) per Bitcoin, according to an official disclosure on July 11. This move, initially announced in February, positions Gumi as a Web3 pioneer among Japanese publicly listed companies by integrating cryptocurrency into both its financial reserves and operational strategy.

Strategic Bitcoin Acquisition and Market Impact

Gumi’s purchase, finalized at a time when Bitcoin’s market value stood at approximately $104,000 per BTC as of June 13, indicates a roughly 20.23% return on its Bitcoin acquisition to date. The acquisition aligns with a growing trend among Japanese firms. Metaplanet, known as “Asia’s MicroStrategy” for its Bitcoin accumulation approach, has become the world’s tenth-largest Bitcoin-holding company with 8,888 BTC. Additionally, Japanese listed companies like Remixpoint and fashion brand ANAP have also announced strategic Bitcoin reserve policies, steadily accumulating the cryptocurrency.

The announcement has had a notable impact on Gumi’s stock performance. As of press time, MarketWatch data indicates a 9.84% surge in Gumi’s stock price following the announcement, with a remarkable 51% increase since the initial February 10 disclosure of the Bitcoin purchase plan. This rally underscores investor confidence in Gumi’s crypto-focused strategy.

Bitcoin Staking via Babylon Protocol

Beyond holding Bitcoin, Gumi is leveraging its acquisition for additional revenue through staking on the Babylon protocol, making it the first Japanese-listed company to participate as a validator in this Bitcoin staking network. Babylon, a protocol designed to enable Bitcoin holders to earn yields through staking, allows Gumi to generate returns on its holdings while contributing to the network’s security.

While diversifying its Bitcoin revenue streams through the Babylon protocol, Gumi also demonstrates a focus on managing asset risks. According to the company’s announcement, Gumi plans to assess the fair value of its crypto holdings quarterly, with gains or losses reflected in its financial statements.

Gumi’s Broader Crypto Ambitions

Founded in 2007 and listed on the Tokyo Stock Exchange in 2014, Gumi is a well-established player in the mobile gaming industry, known for titles like Final Fantasy: Brave Exvius and Brave Frontier. The company has also made significant inroads into the blockchain space through its venture capital arm, Gumi Cryptos Capital (gCC), which invests in early-stage blockchain and crypto projects.

In May, Gumi deepened its Web3 commitment through a strategic partnership with Allora Network to integrate decentralized AI infrastructure into gaming and other sectors. This collaboration aims to enhance Gumi’s gaming ecosystem with AI-driven features, further bridging traditional gaming with emerging technologies.