The Virtual Asset Boom Sweeping the Stock Market

Bitmax Surges 435% This Year on Bitcoin Holdings
Stablecoin-Related Stocks Soar Over 100% This Month Amid Frenzy

In the domestic stock market, the share prices of virtual asset-related stocks, including those linked to Bitcoin and stablecoins, are rising sharply. As virtual asset legislation is being enacted one after another worldwide, expectations are growing in Korea as well, with related discussions gaining momentum. However, many experts advise that, since the share prices of virtual asset-related stocks such as stablecoins have surged rapidly and the industry is still in its early stages, investors should carefully review the underlying businesses before investing.

According to the Korea Exchange on June 25, the previous day Bitmax closed at 6,790 won. This represents a 439.86% increase compared to the end of last year. In June alone, the stock soared by 79.53%.

Bitmax is a leading Korean company related to Bitcoin. As of June 16, it held 251.02 Bitcoins. The company also announced that it would use 90 billion won out of a recently issued 100 billion won convertible bond (CB) to purchase Bitcoin. Bitmax is benchmarking the strategy of Strategy (formerly MicroStrategy), the world's largest corporate holder of Bitcoin.

Stablecoin-related stocks are also drawing attention. Deepmind, an affiliate of Bitmax, recorded a 55.82% increase this month. The stock even hit the daily upper limit the previous day. Deepmind recently issued the stablecoin 'KRDT' on-chain, based on Ethereum (ETH), Base, and BNB Smart Chain (BSC). The company is also expanding its virtual asset business by filing a trademark application for KRDT with the Korean Intellectual Property Office.

Other stablecoin-related stocks have also posted high gains this month: ITCen Global surged by 185.84%, Kakao Pay by 143.06%, Hecto Financial by 142.51%, Danal by 109.55%, and Wemade Play by 71.49%.

The stablecoin trend is sweeping not only Korea but also the world. On June 17, the U.S. Senate passed the 'GENIUS' Act, a regulatory bill for stablecoins. In Korea, the 'Digital Asset Basic Act,' which includes provisions to allow the issuance of won-based stablecoins, has been proposed, signaling the start of a national-level initiative to strategically foster the virtual asset industry.

Kim Dooun, a researcher at Hana Securities, commented, "The global financial market already recognizes stablecoins not as a 'theme' but as a core 'trend.' Korea, too, is at a major turning point, breaking down the boundaries between finance, the economy, and asset management through the Digital Asset Basic Act, expanded institutional investor participation, and the introduction of won-based stablecoins."

He explained that, since the stablecoin market in Korea is still in its early stages, attention should be paid to issuance and settlement. He said, "From an investment perspective, it is important to focus on the digital asset value chain. Now is the time to select Korean companies by referencing the entire process from stablecoin issuance to platforms, payment, custody, and distribution, taking cues from the dollar stablecoin market." He added, "Initially, companies involved in issuance and settlement will attract the most attention, but over time, interest will shift to those specializing in distribution, custody, and security."

However, experts caution that, since most virtual asset-related stocks in Korea are still in their early stages, investors should be careful. A financial investment industry official said, "Recently, stablecoin-related stocks have more than doubled in a short period. As seen in past cases like the metaverse and non-fungible tokens (NFTs), stock prices driven by expectations can return to their original levels if business progress stalls." The official added, "It is important to check whether the actual business is being carried out before investing in stablecoin-related stocks."