South Korean media firm to raise $500M for Bitcoin treasury

South Korean amusement institution K Wave Media has entered into a securities acquisition statement worthy up to $500 cardinal to money a Bitcoin-centric crypto treasury strategy.

According to a June 4 announcement, the steadfast said it reached a woody with Bitcoin Strategic Reserve KWM for the merchantability of mean shares. The woody includes the company’s merchantability of up to $500 cardinal of mean shares to money its Bitcoin treasury.

“By embedding BTC into our halfway strategy, we’re reinforcing our committedness to decentralization, agility, and future-facing worth creation,“ said Ted Kim, co-interim CEO of K Wave Media.

The institution said it aims to go the “Metaplanet of Korea,” which saw its banal soar aft adopting a akin Bitcoin-focused strategy inspired by concern quality institution Strategy (formerly MicroStrategy).

At the clip of writing, K Wave Media’s banal was up 162% connected Nasdaq, trading astatine $5.04.

K Wave Media banal terms chart. Source: Google Finance

Related: Metaplanet becomes 8th largest Bitcoin holder with $118M buy

Financing the Bitcoin treasury

The announcement noted that proceeds from the woody volition beryllium utilized to money K Wave Media’s “Bitcoin-centric integer plus treasury strategy,” suggesting it whitethorn acquisition different cryptocurrencies successful summation to Bitcoin.

K Wave Media besides intends to usage the funds for mergers and acquisitions to grow its contented and K-POP-related businesses. Still, Bitcoin is beforehand and halfway of those plans:

“Under this initiative, K Wave will, taxable to definite limitations, allocate a important information of the proceeds received from the merchantability of immoderate shares nether the installation to the purchasing, semipermanent holding, and output optimization of Bitcoin.“

Related: Metaplanet issues $21M successful bonds to bargain Bitcoin, a time aft $50M raise

The institution besides plans to run Bitcoin Lightning Network nodes and put successful infrastructure that facilitates on-chain transaction rewards and decentralization.

K Wave Media is the latest successful a increasing database of nationalist companies embracing Bitcoin arsenic a firm reserve asset, a inclination that began with MicroStrategy successful 2020 and has since gained traction among firms successful Asia, including Metaplanet, according to information from Bitcoin Treasuries.

Magazine: Korea to assistance firm crypto ban, beware crypto mining HDs: Asia Express