Japanese company Convano, known for its nail salon business, has announced plans to invest $136.4 million in Bitcoin. This highlights the growing interest of traditional businesses in digital assets.
Reasons for Convano's Bitcoin Investment
Convano views its investment in Bitcoin as a strategic move. The company plans to purchase an additional $136.4 million worth of Bitcoin by the end of November 2023. This decision aims to diversify its corporate treasury and use Bitcoin as a hedge against inflation. As of August 22, Convano already held 364.93 BTC.
How Convano is Funding Its Bitcoin Purchase
Convano will finance its Bitcoin purchase through the issuance of its fifth series of corporate bonds. This will raise 20 billion yen, equivalent to $136.4 million. The bond issuance will provide the necessary capital without diluting existing shareholder equity.
Market Implications of Convano's Bitcoin Purchase
Convano's investment in Bitcoin may increase interest from other Japanese companies in similar moves, reinforcing the growing institutional interest in Bitcoin. Large-scale investments by established companies could bolster confidence among retail and institutional investors, and showcase a trend towards diversification of assets.
Convano's plan for a $136.4 million Bitcoin purchase is a significant development, underscoring the growing acceptance of Bitcoin as a corporate asset and representing a strategic shift in how companies manage their treasuries.
