TLDR
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KWM dives 15% as Bitcoin-heavy pivot stirs fears of dilution, volatility
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K Wave’s $1B crypto bet rattles investors despite major financing deals
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Bitcoin blitz backfires: KWM stock slumps amid dilution, market doubts
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K-content meets crypto chaos—KWM’s BTC gamble triggers stock nosedive
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K Wave’s bold Bitcoin push sparks hype, then harsh market correction
K Wave Media Inc. (KWM) shares fell 15.42% to $4.6684 amid heavy volatility early Wednesday. The stock surged to a high of $10.36 before a sharp selloff erased gains. The company’s aggressive Bitcoin accumulation strategy has sparked uncertainty across markets despite securing major financing.
$500 Million Convertible Note Deal Spurs Volatility
K Wave Media entered a $500 million convertible note agreement with Anson Funds to fund its Bitcoin treasury expansion. Under this deal, KWM will allocate at least 80% of net proceeds toward acquiring Bitcoin, starting with an initial $15 million tranche. The offering includes $15.79 million in notes and warrants for 4.3 million ordinary shares.
This capital raise follows a previously signed $500 million Standby Equity Purchase Agreement with Bitcoin Strategic Reserve. Combined, the two agreements give KWM up to $1 billion in potential capital for BTC purchases. However, the market responded with skepticism as the stock tumbled despite the inflow of funds.
Nasdaq-listed K Wave Media raises $1 billion to finance its Bitcoin treasury strategy.💰 pic.twitter.com/Uz2Qfyh5ej
— Moby Media (@mobymedia) July 10, 2025
The senior secured notes carry no interest unless the company defaults, in which case a 12% rate applies. They are convertible at $4.40 per share, slightly below current trading levels, raising concerns over possible future dilution. The warrants are exercisable at $3.6616 and expire five years from issuance.
Bitcoin-Focused Treasury Model Faces Skepticism
K Wave disclosed that it has already purchased 88 BTC, symbolically linking the acquisition to cultural significance in Asia. The company aims to scale this holding to 10,000 BTC, placing it among the most Bitcoin-heavy corporate treasuries globally. Management says the strategy aligns with on-chain financial principles and long-term value creation.
Despite the vision, market participants questioned the risks tied to Bitcoin’s volatile price swings. Shares initially spiked on the announcement but lost momentum rapidly, triggering a broad selloff. The market reaction suggests doubt about tying a media brand so heavily to crypto assets.
Meanwhile, KWM plans to register the underlying shares for resale, which could further pressure the stock. The current trading price sits below the note conversion level, heightening worries about near-term dilution. Market participants remain wary of the execution timeline and regulatory uncertainties.
Korean Content Meets Digital Finance—But the Market Hesitates
K Wave Media combines K-content production with a financial model centered around Bitcoin reserves and blockchain integration. The company promotes its hybrid approach as a gateway to the Web3 economy, aiming for global cultural and economic impact. It plans to explore Bitcoin use in streaming, fan engagement, and investment tools.
CEO Ted Kim emphasizes the long-term relationship between digital finance and entertainment content in driving future growth. However, the sharp decline in stock price reflects market unease around the company’s balance between media operations and financial speculation. Execution risk remains a central concern as the firm pivots into uncharted territory.
The securities were sold under exemptions from SEC registration limiting public transparency and market discomfort. Placement agent D. Boral Capital oversaw the private transaction. Regulatory filings indicate the company may pursue additional closings, subject to further conditions.
