Conversion Price Set at 1,520 KRW... August 5 Closing Price at 3,780 KRW
Stock Price Surges on News of Stablecoin Issuance
Investors in DeepMind's 8th convertible bond (CB) issuance are expected to achieve a return of up to 150%. News of the company's entry into the virtual asset market has driven up its stock price.
According to the Financial Supervisory Service's electronic disclosure system on August 6, DeepMind announced that the conversion rights for the 8th CB, worth 2 billion KRW, had been exercised. The conversion price is set at 1,529 KRW, and the listing date is scheduled for the 22nd of this month. This amount corresponds to 5.42% of the total issued shares.
On the previous day, DeepMind's closing price was 3,780 KRW. If the current stock price is maintained until the listing date, CB investors can expect a return of approximately 147.22%. For the 8th CB, there were also disclosures regarding the exercise of conversion rights on July 2 and July 22. The scheduled listing dates for these were July 22 and August 12, respectively.
DeepMind issued the 8th CB in June of last year. The total value was 4 billion KRW, with both the coupon rate and maturity interest rate set at 3%. The conversion period runs from July 1 of this year to June 24, 2027. The funds were intended for operational expenses such as marketing and personnel costs.
Until May of this year, DeepMind's stock price remained between 2,000 and 3,000 KRW. However, starting last month, the share price began to surge. This was influenced by news of the company's entry into the virtual asset market. On July 24, the company announced that it had issued the stablecoin 'KRDT' on-chain, based on Ethereum (ETH), Base, and BNB Smart Chain (BSC). Subsequently, in July, through its overseas subsidiary, DeepMind registered the domain for the stablecoin trading platform 'StableSwap,' launched the website, and announced the full-scale development of the platform.
Following this news, the stock price, which was 3,000 KRW on June 20, soared to as high as 7,000 KRW during trading on June 27. However, the price has since continued to decline, currently falling to the 3,700 KRW range.
DeepMind has also recently begun actively pursuing the acquisition of virtual asset exchanges. The company established a special purpose company (SPC) called 'Blocksum Acquisition Holdings' and formed a dedicated task force (TF) to oversee related legal and financial procedures. DeepMind is considering the acquisition of both domestic and global virtual asset exchanges.
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