K Wave Media announced a $500 million securities deal to fund a Bitcoin-treasury strategy, aiming to become the “Metaplanet of Korea.”
A South Korean entertainment company called K Wave Media has signed a deal to buy securities worth up to $500 million.
The money will fund a crypto treasury plan based on Bitcoin.
AA release on June 4 said that K Wave and Bitcoin Strategic Reserve KWM had agreed to sell up to $500 million worth of ordinary shares to fund K Wave’s Bitcoin treasury.
Ted Kim, co-interim CEO of K Wave Media, said, “By incorporating Bitcoin into our core strategy, we’re reaffirming our dedication to decentralization, agility, and creating value for the future.”
The business said it wants to become the “Metaplanet of Korea.”
Its stock went through the roof after choosing a Bitcoin-focused strategy similar to that of the business intelligence firm Strategy (formerly MicroStrategy).
The stock price of K Wave Media was $5.04 on Nasdaq at the time of this writing, up 162%.
K Wave Media Secures Funds For Bitcoin Plan
The deal’s proceeds will go toward South Korean media’s “Bitcoin-centric digital asset treasury strategy,” which means the company may buy other cryptocurrencies besides Bitcoin.
K Wave Media also plans to use the money to buy other companies and join them to grow its content and K-POP-related businesses.
But Bitcoin is still at the center of those plans:
“Under this initiative, K Wave will, subject to certain limitations, allocate a significant portion of the proceeds received from the sale of any shares under the facility to the purchasing, long-term holding, and yield optimization of Bitcoin.“
The business also wants to run Bitcoin Lightning Network nodes and put money into infrastructure that makes decentralization and on-chain transaction payouts possible.
K Wave Media is the most recent public company to use Bitcoin as a corporate reserve asset.
This trend started with MicroStrategy in 2020 and has since spread to Asian businesses like Metaplanet, according to data from Bitcoin Treasuries.
