Media reports

Japanese nail salon chain company Convan announced on July 17 its plan to purchase Bitcoin (BTC) worth 400 million yen (approximately 2.5 million U.S. dollars), a move regarded as a major turning point in the company's financial strategy. Convan mainly operates nail brands such as "FASTNAIL" in Japan and is listed on the Tokyo Stock Exchange Growth Market (TSE Growth). This decision is seen as one of the strategies adopted by the company to diversify its financial assets against the backdrop of rising volatility in traditional markets.

With the core purpose of diversifying financial assets

The main purpose of this Bitcoin purchase plan is to achieve strategic diversification of the assets held. In recent years, a growing number of enterprises worldwide have included crypto assets in their reserve asset allocations. Convan's decision on this occasion is clearly one of the manifestations of following this trend. In addition, Japan's currently relatively relaxed regulatory environment for cryptocurrencies has also become a background factor driving this decision. However, the company has not yet publicly stated its specific assessment mechanism for related risks. This attempt also symbolizes a new exploration by Convan beyond its core businesses such as nail salon operations and related product development. As a company pursuing growth, Convan obviously regards Bitcoin as a reserve asset with high income potential.

Corporate Strategy and Market Impact

The planned purchase of Bitcoin worth 400 million yen is equivalent to approximately 1.2% of the company's total revenue (3.24 billion yen) in the previous fiscal year. This amount has been approved by the company's board of directors, indicating the high priority of this decision in the company's strategy. Currently, Convan's price-to-earnings ratio is as high as 450 times, reflecting the market's high expectations for the company's future growth. The purchase of Bitcoin this time may also be a strategic move in response to market expectations. However, it remains unclear whether the shift to allocating such alternative assets will have an impact on the actual operation of its main business, the nail salon. In addition, since the company has no dividend record yet, shareholders' reactions to this move have not yet emerged. Although investments in crypto assets by such enterprises are expected to bring future returns, they are also accompanied by significant risks of price fluctuations. Therefore, the market will pay close attention to their subsequent performance.