Bitcoin price changes can also affect the securities market? These Japanese companies are surprised

Japanese companies are still reaping the benefits of accepting bitcoin since the government recognized it as a legal payment method, and the stock prices of small businesses that offer bitcoin services are rising along with the price of bitcoin.

Rising coin prices benefit traditional securities markets

On April 1, Japanese Prime Minister Shinzo Abe's government legalized Bitcoin as a payment method. The new law sets strict rules for Bitcoin exchanges, giving the digital currency more credibility. Many companies have subsequently incorporated Bitcoin into their existing business models, and some have also established partnerships with small Bitcoin startups.

As Bitcoin has become more popular in Japan, its price has also seen a sharp rise. Data from Bitflyer, a major Japanese Bitcoin exchange, shows that as of press time, Bitcoin has risen 180% since the beginning of the year.

At the same time, stocks of small and medium-sized listed exchange companies that have integrated Bitcoin into their operations have also seen a similar upward pattern. According to Bloomberg, Naoki Murakami, a well-known Japanese day trader (short-term trader), said that "the rise in stocks always coincides with the rise in the price of the currency." He said:

Buying shares in these small businesses is an attractive way for speculators to invest in the cryptocurrency market without buying it directly... Not everyone trusts Bitcoin exchanges. Some people don't have accounts on exchanges. So they choose to speculate in the securities market.

Since about a month ago, all cryptocurrencies have started to rise wildly and we have witnessed the so-called 'crypto-stock bubble' phenomenon.

In addition, he explained that the Japanese stock market has relatively relaxed listing conditions, so many small companies can successfully go public with "no revenue and a market value of only $10 million." This is why the Tokyo Stock Exchange has become a boon for hundreds of small companies.

It may not be a coincidence that the Japanese securities market has become an alternative to Bitcoin investment.

Winner

According to Bloomberg, companies whose stocks rose after announcing the integration of their digital currency businesses included Remixpoint Inc, Infoteria Corporation and Fisco Ltd.

Remixpoint Inc is the largest company, with a market value of 31.3 billion yen ($283 million). The company opened a bitcoin exchange, Bitpoint, in late May and later announced plans to install more than 100,000 BTMs around the world. Its stock price has more than tripled since it announced a partnership with Peach Aviation to provide bitcoin payments.

Infoteria Corporation, which is working with bitcoin exchange platform developer Tech Bureau to test blockchain technology for proxy voting, has seen its stock price rise 50 percent in the past month. Similarly, financial information service provider Fisco Ltd., which began operating a bitcoin exchange last year, has seen its stock price rise 25 percent since the beginning of May.

When the price of Bitcoin fell, the shares of these companies experienced a similar decline. However, overall, their gains have far outweighed their losses.