Bitmax, the listed company with the largest Bitcoin holdings in Korea, announced on July 1 that it is increasing its holdings and strengthening its Bitcoin treasury strategy.
Under current regulations, domestic corporations are not allowed to open real-name accounts for trading virtual assets. As a result, Bitmax is pursuing its Bitcoin treasury strategy based on advice from domestic law firms.
It is reported that the law firm advised that the most transparent and secure method is for the largest shareholder to purchase Bitcoin directly and then sell it to the company. Following this advice, Bitmax Chairman Kim Byungjin has been purchasing Bitcoin directly on the exchange, and then selling it to the company at the same price after an accounting firm’s valuation. The company explained, “All these processes are reported to the financial authorities, and no profit is generated from the transaction.”
A Bitmax representative stated, “Until corporations are allowed to open real-name accounts for virtual assets, we plan to continue expanding our Bitcoin holdings with the advice of major law firms.”
Bitmax has shortened the procedural period for virtual asset transactions through repeated purchases and sales. In March, the accounting firm’s valuation took seven days, but on June 24, the process was completed in just two days. As the evaluation period shortens, the risk from price fluctuations is also being reduced.
The company is also considering switching to a new transaction method in line with the pilot approval of real-name accounts for corporations scheduled for September.
A company official explained, “While it is possible to acquire virtual assets by paying fees in the over-the-counter (OTC) market, we determined that having the largest shareholder acquire the assets and then sell them to the company within a few days is more cost-efficient and helps build market trust.”
The official added, “We are reviewing various options in preparation for the implementation of real-name accounts for corporations, and as the number one listed company in Korea in terms of Bitcoin holdings, we will continue to steadily increase our holdings to maintain our position.”
As of June 24, Bitmax’s Bitcoin holdings exceeded 300, the largest among listed companies in Korea. The company also plans to use the entire 50 billion won in funds from convertible bonds (CB) scheduled to be issued next month for Bitcoin purchases.
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