Remix Point, a publicly traded Japanese company, spent approximately $5.25 million to purchase four major cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Solana (SOL).
Specifically, Remixpoint purchased 64.4 Bitcoin, 2,260.5 Solana, 130.1 Ethereum, and 12,269.9 Avalanche. According to a recent report confirming the purchase, the company claims to have spent approximately $4.2 million (JPY 600 million in Japanese yen) to acquire BTC. In addition, Remix Point has committed approximately $350,000 (50 million yen) each to the acquisition of Avalanche, Ethereum, and Solana.
$10.5 million will be allocated for the purchase of cryptocurrencies
Notably, Remix Point acquired the assets on September 27th. The move comes a day after the company revealed plans to purchase $10.5 million (1.5 billion yen) worth of digital currency.
Of this amount, Remix Point, whose shares are listed on the Tokyo Stock Exchange (TSE), plans to prioritize investment in Bitcoin, with approximately $8.4 million (1.2 billion yen) being allocated to purchasing Bitcoin. It was planned.
However, approximately $700,000 (100 million yen) was allocated to each acquisition of Solana, Ethereum, and Avalanche. Of the total amount of $10.5 million, Remix Point has already made its first cryptocurrency acquisition, bringing the total amount to approximately $5.25 million.
Based on market conditions, the company plans to purchase an additional $5.25 million worth of BTC, SOL, ETH, and AVAX by the end of the year. RemixPoint's acquisition of cryptocurrencies is part of the company's efforts to diversify its investments and optimize its money management strategy.
Additionally, the company acquired cryptocurrencies to reduce the risk of a weaker Japanese yen on its balance sheet.
Japanese yen depreciation
By way of background, the Japanese yen has depreciated significantly since the beginning of the year, depreciating more than any other G10 currency.
Analysts at Goldman Sachs predicted in May that the currency would remain weak in the coming months, and that the situation could get worse if the U.S. Federal Reserve tapered its interest rate cuts.
Four months after this prediction, the yen fell to 140.61 yen to the dollar, its lowest level since the beginning of the year. The currency has shown some recovery and currently stands at $143.06 to the dollar.
In view of the significant depreciation of the yen, Remix Point chose to acquire Bitcoin, Avalanche, Solana, and Ethereum to limit its exposure to currencies.
Besides Remix Point, other Japan-based companies are also turning to cryptocurrencies to protect themselves from the country's economic instability. Earlier this year, Japan-based Metaplanet leveraged MicroStrategy's Bitcoin investment strategy to cushion the impact of the weaker yen. In May, the company acquired 19.87 BTC, currently worth $1.27 million.
Remix Point stock price skyrockets
On the other hand, Remix Point's acquisition of virtual currency had a positive impact on the stock price. The stock, which had been trading between 159 yen and 164 yen for most of last week, soared to 179 yen shortly after Remix Point announced plans to buy cryptocurrencies on September 26th.
The price then rose to 181 yen early today, but fell back to 177 yen in the hours leading up to this article's writing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
