Japanese tech giant Sony has quietly expanded its portfolio by acquiring the cryptocurrency exchange Amber Japan. This strategic move positions Sony, a $100 billion conglomerate known for its presence in music, games, and cameras, firmly within the burgeoning crypto industry.
Amber Japan’s Evolution and the Financial Barriers it Has Encountered
Amber Japan entered the crypto market when Singapore-based market maker Amber acquired Japan’s regulated crypto trading platform DeCurret in early 2022. After this acquisition, the platform is renamed Amber Japan. However, in 2022, the failure of the FTX exchange affected Amber Group negatively and made it financially unstable.
Read Also: Bitcoin hits a new high number of Wholecoiner addresses, with more than one million
Thus, there were reports that the company had to resort to a debt-to-equity transaction with Fenbushi Capital to survive. Some of the most recognized names invested in the Amber Group include Pantera Capital, Temasek, Tiger Global, Sequoia China, and Coinbase. The Chinese crypto reporter Colin Wu pointed out that Sony’s buying up of Amber Japan is a planned move into the crypto exchange sector. Thus, having a leading market position, Sony intends to influence and define the further development of Amber Japan.
Japan’s Shifting Crypto Landscape
The Japanese crypto market has been changing dynamically due to the devaluation of the Japanese yen and the recent monetary intentions of the Bank of Japan. Last week, the yen fell to the lowest levels, forcing many investors to incorporate a bitcoin plan. Continuing from Microstrategy, some Japanese firms, such as Metaplanet, have started including Bitcoin in their treasuries. Metaplanet last month offered to buy $7 million Bitcoins through a bond sale. Moreover, Metaplanet is adding a cryptocurrency focus by launching its new subsidiary in the British Virgin Islands. This general step forms part of efforts to improve its approach to investing in Bitcoin and the size of its Bitcoin portfolio, consistent with funding objectives.
Conclusion
Sony’s acquisition of Amber Japan highlights its strategic entry into the crypto industry amid Japan’s rapidly changing crypto landscape. With significant financial backing and a clear strategy, Sony aims to leverage its market strength to influence the future trajectory of Amber Japan and the broader crypto market in Japan.
Read Also: Binance Extends Monitoring Tag to These 11 Tokens, Risk of Delisting Ahead?
