Remixpoint, a publicly listed company in Japan, splashes about $5.25 million to purchase four major cryptocurrencies, such as 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 claimed it spent around $4.2 million (600 million Japanese Yen) to acquire the BTC. In addition, Remixpoint committed about $350,000 (50 million Yen) each to purchase Avalanche, Ethereum, and Solana.
$10.5M Allotted for Crypto Purchases
Notably, Remixpoint acquired the assets on September 27. The move comes a day after the company revealed plans to purchase digital currencies worth $10.5 million (1.5 billion Yen).
Of the total amount, Remixpoint, whose stock is listed on the Tokyo Stock Exchange (TSE), planned to prioritize investments in Bitcoin, with nearly $8.4 million (1.2 billion Yen) marked for the purchase of BTC.
However, around $700,000 (100 million Yen) each was earmarked to acquire Solana, Ethereum, and Avalanche. From the $10.5 million total figure, Remixpoint has already made its first crypto acquisition, totaling around $5.25 million.
The company plans to purchase another $5.25 million worth of BTC, SOL, ETH, and AVAX by the end of the year, based on market conditions. Remixpoint’s acquisition of crypto is part of the company’s efforts to diversify its investments and optimize its cash management strategies.
Furthermore, the company acquired cryptos to mitigate the risk of Japanese Yen depreciation on its balance sheet.
Japanese Yen Weakens
For context, the Japanese Yen has plummeted heavily since the beginning of the year, plunging more than any of the G10 nations’ currencies.
In May, analysts at Goldman Sachs projected that the currency would remain weak in the coming months, forecasting that the situation might worsen if the U.S. Federal Reserve introduces fewer interest rate cuts.
Four months after the prediction, the yen plunged to a year-to-date low of 140.61 in the dollar. The currency has witnessed a slight recovery and is currently valued at 143.06 to the dollar.
Given Yen’s heavy depreciation, Remixpoint chose to acquire Bitcoin, Avalanche, Solana, and Ethereum to limit its exposure to the currency.
Besides Remixpoint, other Japanese-based companies have also turned to cryptos to shield themselves from the country’s economic instabilities. Earlier this year, Japanese-based Metaplanet leveraged Microstrategy’s Bitcoin investment strategy to cushion the effect of yen’s devaluation. In May, the company acquired 19.87 BTC, which is currently valued at $1.27 million.
Remixpoint Shares Surge
Meanwhile, Remixpoint’s crypto acquisition had a positive impact on its share prices. The share, which traded between 159 and 164 JPY for the most part of last week, surged to 179 JPY immediately after Remixpoint announced plans to purchase cryptos on September 26.
It subsequently rose to 181 JPY earlier today before retracing to 177 JPY in the hours leading up to press time.
Remixpoint shares