Bitnine Burns 14.7 Billion KRW Worth of CBs... "Enhancing Shareholder Value"

Bitnine announced on the 19th that it will purchase and then cancel convertible bonds (CB) worth 14.7 billion KRW to enhance shareholder value.

The CBs to be canceled are the second series issued on July 8, 2022, totaling 14.728 billion KRW. The remaining balance is 13.272 billion KRW.

A Bitnine representative stated, "The cancellation was carried out to enhance shareholder value," adding, "This will immediately result in effects such as securing financial stability, preventing stock dilution, and reducing interest expenses."

Directors Company, which will become the largest shareholder through a recent paid-in capital increase, explained, "This measure is expected to bring effects such as preventing dilution of existing shareholders' stocks, improving the company's cash flow, and reducing the debt ratio, all from the perspective of sustainable management for shareholders."

Meanwhile, Directors Company and Bitnine will issue new convertible bonds worth 60 billion KRW to accelerate their artificial intelligence (AI) business. The funds will be used for operating expenses to expand AI overseas business, investment in AI technology and infrastructure expansion costs, and strategic investments in other companies' shares for AI business expansion.

A company representative emphasized, "We will promote the business aiming to become the global number one in the generative (GEN) AI B2B (business-to-business) advertising sector."