(Bloomberg) — Kim Jung-ju, the billionaire behind Nexon Co., is having a turbulent month.Shares of the Tokyo-listed gaming firm have plunged 21% because it forecast a decline in revenue on Might 12, suggesting its sturdy efficiency when the pandemic stored individuals indoors gained’t be sustained as some nations reopen.That’s erased about $1.9 billion from the South Korean entrepreneur’s internet value, decreasing his fortune to $8.1 billion, in accordance with the Bloomberg Billionaires Index.On high of that, Kim’s diversification away from gaming into areas together with cryptocurrency is dealing with obstacles. Bitcoin has dropped nearly 38% because it rose to a file in April, a stark instance of the swings within the costs of digital cash which have left some mainstream buyers skeptical.Kim, 53, has been an avid supporter of digital currencies, and has been buying cryptocurrency exchanges in recent times. Nexon additionally purchased $100 million value of Bitcoin final month.“It was certain to come back down,” Matthew Kanterman, an analyst with Bloomberg Intelligence, stated of Nexon’s earnings forecast. “Final 12 months was a excessive base and they aren’t going to copy that,” he stated. On Bitcoin, “firms don’t like shopping for stuff with an excessive amount of volatility,” he stated, suggesting Nexon is unlikely so as to add to its buy for now.Crypto InvestmentsEven earlier than Nexon purchased Bitcoin, Kim’s holding firm NXC Corp., which owns nearly half of Nexon, snapped up 65% of Korbit Inc., a crypto trade in South Korea, in 2017.The next 12 months, NXC’s subsidiary in Europe acquired one other cryptocurrency trade: Luxembourg-based Bitstamp.Korbit’s ebook worth plunged to about 3.1 billion gained ($2.8 million) on the finish of final 12 months from about 96 billion gained on the finish of 2017, in accordance with NXC’s monetary statements for 2017 and 2020. A spokesman for NXC stated there’s no plan to promote the exchanges that it purchased.Kim was additionally eager to amass Bithumb, certainly one of South Korea’s largest digital foreign money exchanges, in accordance with native media stories earlier this 12 months. The NXC spokesman declined to remark.Kim declined to be interviewed for this story. Owen Mahoney, Nexon’s chief government officer, wasn’t obtainable for remark.The corporate pointed to Mahoney’s Medium submit in April on the Bitcoin buy. Nexon sees Bitcoin as a type of money that’s prone to retain its worth, he stated. The Bitcoin buy represents lower than 2% of the agency’s money and equivalents.“The know-how underlying BTC and different cryptocurrencies is starting to creep into many areas of day-to-day use, corresponding to funds, digital collectibles and different areas which can be more and more related for firms like ours,” Mahoney wrote.Embracing CryptoOther large names within the gaming business have additionally embraced cryptocurrencies and associated blockchain applied sciences.Kakao Video games Corp., a subsidiary of South Korea’s hottest mobile-messenger operator Kakao Corp., added to its holdings in blockchain know-how firm Way2Bit Co. final 12 months, changing into the most important shareholder. Cellular recreation writer Gamevil Inc. invested final month in crypto trade Coinone Inc.“As finance and fee techniques are fairly vital in video games, builders are considering of the way to combine blockchain know-how to enhance what they’ve now,” stated Lee Seung-hoon, an analyst at IBK Securities Co. in Seoul. “Their investments are extra like R&D efforts at this stage.”Sq. Enix Holdings Co., the Japanese writer of standard role-playing video games corresponding to Dragon Quest and Closing Fantasy, was among the many buyers that injected $2 million in money and cryptocurrency into Ethereum-based recreation developer TSB Gaming Ltd. in 2019.‘Vital Presence’“Video games utilizing blockchain are not of their infancy and are step by step coming to symbolize a extra vital presence,” Yosuke Matsuda, the Japanese agency’s president, stated in a New Yr’s letter final 12 months.Kim based Nexon in South Korea in 1994 after majoring in pc science and engineering at Seoul Nationwide College. In 2011, Nexon listed in Japan.Two years in the past, he thought-about promoting his stake within the firm, held via NXC, triggering discussions with main gamers together with Tencent Holdings Ltd. and Hillhouse Capital. He scrapped the plan when he couldn’t discover a appropriate purchaser, in accordance with native media stories.Nexon, well-known for hit titles corresponding to MapleStory and KartRider, posted internet revenue attributable to its father or mother’s house owners of 69.7 billion yen ($639 million) within the first six months of 2020 as lockdowns compelled individuals to spend extra time at house. For a similar interval this 12 months, it forecast a spread from 55 billion yen to 58.3 billion yen. The excessive finish of the vary would symbolize a 16% drop from final 12 months.Kim stated in a uncommon interview with South Korean newspaper Chosun Ilbo in 2012 that worrying about maintaining with new technological traits may even disrupt his sleep.“To be able to survive, I’ve to just accept new issues,” Kim stated.Extra tales like this can be found on bloomberg.comSubscribe now to remain forward with essentially the most trusted enterprise information supply.©2021 Bloomberg L.P.