Gumi, a Japanese gaming and blockchain company, has recently made a significant investment of 1 billion yen ($6.5 million) in Bitcoin (BTC), as announced in a letter to the market on February 10. This investment, representing 4.3% of Gumi’s $150 million market capitalization, is set to take place from February to May. Following this news, Gumi’s stock saw a 3.65% increase.
In addition to this investment, Gumi disclosed that it has become the first publicly listed Japanese company to participate as a validator for the BTC staking protocol Babylon in the second quarter of the fiscal year ending April 2025. Babylon allows users to stake their Bitcoin in order to earn rewards, with the staked BTC serving as security for other protocols, creating a Bitcoin Secured Networks layer. The protocol boasts over $5.4 billion in total value locked based on DefiLlama data.
The decision to invest in Bitcoin and participate in staking aligns with Gumi’s strategy to strengthen financial operations within its blockchain-focused business, which has become a key driver of the company’s growth. Gumi’s Board of Directors approved the purchase as part of this strategic initiative.
According to Babylon’s website, Gumi currently has 7.99 BTC staked on the platform, valued at over $770,000, earning a 5% commission.
Looking ahead, Gumi anticipates new revenue streams from capital appreciation and additional validator rewards through its Bitcoin investment and staking activities. This move reflects the company’s ambitions in the Web3 space, aiming to expand its presence in decentralized finance (DeFi) and blockchain-based financial services.
Furthermore, Gumi’s website reveals that the company is already a node operator for eight blockchains, including Ethereum, Sui, and Avalanche. Additionally, Gumi has a dedicated blockchain unit that focuses on integrating games with non-fungible tokens (NFTs), with partnerships with gaming companies Capcom and Double Jump.
Gumi has also made investments in the NFT marketplace OpenSea and the gaming-focused decentralized organization Yield Guild Games. The company plans to conduct quarterly valuations of its Bitcoin holdings and will promptly disclose any significant financial impact resulting from this investment.
As Gumi continues to navigate the intersection of gaming and blockchain technology, its latest moves in the Bitcoin investment and staking space signal a strategic shift towards capitalizing on the opportunities presented by the evolving landscape of digital assets and decentralized finance.