'Stock Price Soars 5-Fold'... Company Announces Plan to Buy 90 Billion KRW Worth of Bitcoin

Bitmax, the "Korean Version of MicroStrategy"
Holds 300 Bitcoins... The Largest Among Korean Companies

The stock price of a company that has been relentlessly purchasing Bitcoin has surged by approximately 500%.

According to the Korea Exchange and the Financial Supervisory Service's electronic disclosure system on June 29, KOSDAQ-listed Bitmax announced that it has issued a total of 100 billion KRW in convertible bonds (CB) so far this year, of which about 90 billion KRW will be used to purchase Bitcoin. In fact, Bitmax has continued to buy Bitcoin this year, and its current Bitcoin holdings have reached 300. This is the largest amount among all listed companies in Korea.

The company's stock price soared as it continued to buy Bitcoin. The share price, which was in the 1,000 KRW range at the beginning of the year, has risen to 7,000 KRW, marking a 500% increase. It appears that the stock price is continuing its sharp rise alongside the increase in Bitcoin's price.

Previously, Bitmax was listed in 2021 as a metaverse software company called Maxst, but due to sluggish business performance, including the contraction of the metaverse sector, its market capitalization fell to the 50 billion KRW range. In February, Chairman Kim Byungjin of Plaike acquired the company, changed its name, and entered the virtual asset business. This move has drawn attention from investors, as it resembles a "Korean version of MicroStrategy."

The company most frequently mentioned as a "Bitcoin acquisition" business model is MicroStrategy, a US Nasdaq-listed company. MicroStrategy currently holds about 590,000 Bitcoins, valued at approximately 86 trillion KRW. MicroStrategy has also continued to purchase Bitcoin through external fundraising, including the issuance of convertible bonds. As a result, its stock price has risen by about 2,500% over the past five years.

There are other listed companies that have entered the virtual asset strategy. Bridge Biotherapeutics was listed in 2019 under a special technology listing for new drug development, but faced the risk of delisting due to a series of clinical failures. Subsequently, it secured funding from US virtual asset investment firm Parataxis and shifted its focus to become a virtual asset-themed stock. On June 30, it plans to conduct a third-party allotment capital increase of 20 billion KRW and issue 5 billion KRW in convertible bonds, both to Parataxis.

In terms of Bitcoin holdings by company, Bitmax is followed by Wemade with 223 Bitcoins, Neowiz with 123, Kakao with 39, Celltrion with 18.05, Danal with 17, and Netmarble with 8.29 Bitcoins.

However, there are concerns about this strategy. If virtual assets cannot be established as a genuine profit model, it may serve only as a means of boosting stock prices.