K Wave Media, a South Korean company, plans to sell $500 million in shares to finance the purchase of Bitcoin, inspired by the Metaplanet model. Its goal is to accumulate BTC long-term, operate Lightning Network nodes, and invest in Bitcoin-native infrastructure to optimize returns. This reflects the growing institutional interest in cryptocurrencies in South Korea, in a context of an active crypto market and pro-crypto election promises, although Bitcoin's volatility remains a challenge.

South Korean entertainment company K Wave Media has entered into a securities purchase agreement worth up to $500 million to fund a Bitcoin-centric crypto treasury strategy.

According to a June 4 announcement, the firm said it reached a deal with Bitcoin Strategic Reserve KWM for the sale of ordinary shares. The deal includes the company’s sale of up to $500 million of ordinary shares to fund its Bitcoin treasury.

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

The company said it aims to become the “Metaplanet of Korea,” which saw its stock soar after adopting a similar Bitcoin-focused strategy inspired by business intelligence company Strategy (formerly MicroStrategy).

At the time of writing, K Wave Media’s stock was up 162% on Nasdaq, trading at $5.04.

K Wave Media stock price chart. Source: Google Finance

Financing the Bitcoin treasury

The announcement noted that proceeds from the deal will be used to fund K Wave Media’s “Bitcoin-centric digital asset treasury strategy,” suggesting it may purchase other cryptocurrencies in addition to Bitcoin.

K Wave Media also intends to use the funds for mergers and acquisitions to expand its content and K-POP-related businesses. Still, Bitcoin is front and 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 company also plans to operate Bitcoin Lightning Network nodes and invest in infrastructure that facilitates on-chain transaction rewards and decentralization.

K Wave Media is the latest in a growing list of public companies embracing Bitcoin as a corporate reserve asset, a trend that began with MicroStrategy in 2020 and has since gained traction among firms in Asia, including Metaplanet, according to data from Bitcoin Treasuries.

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