Tokyo Game Studio Gumi Inc. Announces Plan to Purchase $6.58 Million in Bitcoin

Tokyo-listed mobile game developer Gumi Inc. has announced plans to acquire Bitcoin worth 1 billion Japanese yen (approximately $6.58 million) as part of its strategic expansion into blockchain and Web3.

The company revealed on Monday that the purchase is expected to take place between February and May 2024.

In a translated statement, Gumi said that the acquisition would bolster its node operation business and strengthen its presence in the Web3 space.

Gumi Inc. Bets on Bitcoin for Financial Stability and Blockchain Expansion

The company views Bitcoin as a key asset in its efforts to enhance financial stability while advancing its blockchain-related ventures.

Gumi also highlighted its recent move into bitcoin staking, becoming the first publicly traded Japanese firm to serve as a validator in the Babylon protocol during the second quarter of its fiscal year ending in April 2025.

By staking its bitcoin holdings, the company anticipates generating secondary revenue through validator rewards, in addition to potential gains from bitcoin’s price appreciation.

“As part of our cryptocurrency strategy, we will assess fair market value quarterly and record any gains or losses in our income statement,” Gumi stated.

Founded in 2007 and publicly listed on the Tokyo Stock Exchange in 2014, Gumi has developed popular mobile games, including Final Fantasy: Brave Exvius and Brave Frontier.

The company also operates Gumi Cryptos Capital (gCC), a venture capital firm focused on early-stage investments in blockchain and cryptocurrency startups.

Following the announcement, Gumi’s stock price rose 3.65% on Monday, closing at 454 yen, according to MarketWatch.

Meanwhile, Bitcoin is currently trading at over $98,000, reflecting a more than 1% increase over the past 24 hours.

Elsewhere in Japan, Metaplanet Inc., an investment advisory firm, has positioned itself as the country’s first publicly traded company to establish a Bitcoin treasury.

According to its latest financial report, Metaplanet currently holds 1,762 BTC and plans to expand its reserves to 10,000 BTC by the end of the year.

Japan to Exempt Crypto Firms from Taxes on Unrealized Gains

Last year, the country’s National Tax Agency also revealed that it has revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20.

At the time, Prime Minister Fumio Kishida said the move was aimed at boosting its blockchain and crypto sectors amid a push for “new capitalism.”

Crypto investors will still be liable to pay a maximum of 55% income tax on any earnings over JPY200,000 ($1,797) related to cryptocurrency, classified as “miscellaneous income.”

However, the approval of this bill hinges on the decision of both chambers of the Japanese parliament, namely the House of Representatives and the House of Councilors.

More recently, the FSA proposed a new amendment to the definition of Article 2 of the Financial Instruments and Exchange Act in a move to provide clarity on the legal nature, operational rules, member responsibilities, ownership, and tax relationships of DAOs.

The proposed amendment aims to grant a specific token called the “Limited Company Type DAO Employee Rights Token” the same treatment as regular limited liability company (LLC) member rights.

By doing so, the FSA intends to ease regulations on employee rights in tokenized LLCs and streamline the operations of DAOs.