Remixpoint invests heavily in cryptocurrencies to combat the risk of yen depreciation
Remixpoint, a publicly listed Japanese company, has recently decided to enter the cryptocurrency market in a large scale in response to the economic situation of the yen continuing to weaken. The company spent approximately 750 million yen (approximately NT$165 million) to purchase four major cryptocurrencies: Bitcoin, Ethereum, Avalanche ($AVAX) and Solana ($SOL) to diversify investment risks and optimize cash management Strategy.
Remixpoint purchased 64.4 Bitcoin, 2,260.5 Solana, 130.1 Ethereum, and 12,269.9 Avalanche on September 27. According to recent reports, the company spent approximately 600 million yen (approximately NT$132 million) on Bitcoin, and invested approximately 50 million yen (approximately NT$11.02 million) individually on Ethereum, Avalanche, and Solana.
Source: Remixpoint Remixpoint purchase details of cryptocurrency
Remixpoint’s investment comes at a time when the yen has depreciated sharply since the beginning of the year. The yen has become the worst-performing currency among G10 countries this year, with the exchange rate falling to a year low of 140.79 yen per dollar. Currently, although it has recovered slightly, it is still hovering at a low of 144.48 yen per dollar. In order to reduce the impact of the depreciation of the yen on the company's balance sheet, Remixpoint chose to reduce its exposure to the yen by investing in cryptocurrencies.
Source: Google Finance USD/JPY trading exchange rate
Plans to continue to increase holdings, crypto investment boosts stock price rise
Remixpoint previously announced on September 26 that it plans to purchase cryptocurrencies with a total value of approximately 1.5 billion yen this year. The first batch of investments completed this time is approximately half of the total, and further investments will be made before the end of the year based on market conditions. Approximately 750 million yen was purchased for the aforementioned cryptocurrency.
This investment move has had a positive impact on Remixpoint's share price. The company's shares had fluctuated between 159 and 164 yen for much of last week, but immediately surged to 179 yen after announcing plans to buy the cryptocurrency on Sept. 26. The share price has since risen further to 181 yen on September 27, showing investors’ confidence in the company’s move into the crypto market.
In addition to Remixpoint, other Japanese companies have also turned to cryptocurrencies to cope with the risks of domestic economic instability. As early as May this year, Japan's Metaplanet Company referred to MicroStrategy's Bitcoin investment strategy and purchased 19.87 Bitcoins, currently worth approximately $1,270,000, to mitigate the impact of the depreciation of the yen.
Expert analysis: Corporate hedging needs drive crypto investment boom
Analysts pointed out that the continued weakness of the yen has increased the pressure on Japanese companies to face exchange rate risks. In order to protect the value of assets, companies choose to allocate part of their funds to non-yen assets such as cryptocurrencies, which has become an emerging means of hedging. Goldman Sachs predicted in its May report that the yen's weakness could intensify if the U.S. Federal Reserve cuts interest rates less often.
Remixpoint's investment is not only to combat the risk of yen depreciation, but also as part of the company's diversified investment strategy. By expanding into the cryptocurrency market, the company hopes to gain more opportunities in the global digital asset industry and improve the risk resistance of its asset portfolio.
In the future, as more companies realize the potential value of cryptocurrency, it is expected that more Japanese companies will join the investment ranks. This trend not only reflects corporate unease with the traditional monetary system, but also shows growing trust in digital assets. For investors, this may be an emerging market trend worth paying attention to.
