Gaming company Razer mulls entering cryptocurrency space
HONG KONG-LISTED Razer is "carefully evaluating" a potential entry into the cryptocurrency space as the phenomena gains popularity among youth and millennials.
Its chief executive Tan Min-Liang, in a slide presentation during the company's annual general meeting on Tuesday, said: "With our global reach to hundreds of millions of gamers and the youth worldwide, (and) our Razer Gold and fintech businesses that process billions of dollars worldwide, the potential for blockchain and crypto applications is quite clear.
"If we were to enter this space, it's likely we would be one of the larger players given our fan base and ecosystem," he said.
Razer joins a growing number of large mainstream corporations eyeing an involvement in cryptocurrencies. Tesla, whose chief executive Elon Musk has been vocal on the subject, disclosed in February that the company had bought US$1.5 billion worth of bitcoin to hold on its balance sheet.
BNY Mellon, the world's largest custodian bank, said it will hold and transfer cryptocurrencies for clients; Singapore-headquartered DBS launched a digital exchange in December and last month announced a trust solution for cryptocurrencies.
While predominantly a gaming hardware company, Razer has made inroads into financial services technology. It operates a virtual-credits system for gamers, a merchant-payments business and a consumer e-wallet. It also wants to create a digital bank for youth and millennials.
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In a Twitter update on Tuesday, Mr Tan said it is unlikely that Razer will issue its own cryptocurrency, but he won't rule out the company accepting one or more of the cryptocurrencies out there for its hardware and services.
He said during the annual general meeting that he has been engaging with a number of blockchain and crypto companies via Facebook and Twitter. "Just like any other new business initiatives and plans, we keep our options open and will take into consideration things such as the company's long-term development, shareholders' interests and funding plans."
The company is also "mindful about its impact on GPU supply for gamers as well as on the environment", he added. GPU refers to a type of graphics card highly sought after for its processing speed, but in short supply amid demand from crypto miners and gamers.
Mr Tan's comments come as Razer rolls out a 10-year sustainability roadmap, including launching a US$50 million fund to invest in startups working on environmental and sustainability issues, and achieving 100 per cent carbon neutrality by 2030.
Cryptocurrencies are known for their large carbon footprint. The process of mining Bitcoin, for instance, has been said to guzzle enough energy to run entire countries annually.
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