Nasdaq-Listed K Wave Media Secures $1 Billion to Advance Bitcoin Treasury Strategy

K Wave Media Inc. (NASDAQ: KWM) has secured a landmark $1 billion in capital capacity to drive its Bitcoin treasury strategy, blending Korean cultural content with decentralized finance.

The financing includes a $500 million senior secured convertible note agreement with Anson Funds and a $500 million Standby Equity Purchase Agreement (SEPA) with Bitcoin Strategic Reserve, marking a bold step in the company's financial strategy.

Financing Structure and Bitcoin Acquisition Plan

The $1 billion capital raise consists of two components: a $500 million convertible note agreement with Anson Funds and a $500 million SEPA with Bitcoin Strategic Reserve. An initial $15 million tranche of convertible notes and warrants has already been issued, with at least 80% of the net proceeds allocated toward purchasing Bitcoin.

K Wave Media aims to acquire 10,000 BTC and has already purchased 88 BTC as of July 2025. The convertible notes mature on July 3, 2027, with a conversion price of $4.40 per share. The associated warrants are exercisable at $3.6616 for up to 143,739,293 shares over five years.

CEO Ted Kim remarked: “Our objective is clear: to scale our holdings toward 10,000 Bitcoin as soon as possible while maintaining strong investor alignment and full transparency in treasury reporting. At the same time, our existing K‑content businesses stand to benefit from this BTC‑driven treasury strategy as we actively explore innovative ways for global fans to engage with, consume, and even invest in our premium movies and dramas using Bitcoin.”

Anson Funds CEO Amin Nathoo added: “We are excited to partner with K Wave and their impressive management team as they execute on both the K‑content and Bitcoin treasury opportunities.”

The SEPA, announced in June 2025, provides additional flexibility to scale Bitcoin holdings alongside the convertible note arrangement.

Blending K-Pop with Cryptocurrency Innovation

K Wave Media is the first Nasdaq-listed company to integrate Korean entertainment—including K-pop, K-dramas, and other cultural content—with a Bitcoin treasury strategy. Drawing inspiration from Japan’s Metaplanet, which gained market traction through a similar approach, K Wave seeks to merge the global appeal of Korean culture with Web3 innovation.

This unique positioning aims to redefine how cultural enterprises engage with emerging financial technologies, with Bitcoin serving as a core treasury asset.

Market Reaction and Financial Risks

The market initially reacted enthusiastically to K Wave Media’s Bitcoin treasury announcement, with the stock price surging 366% from $1.50 to over $7 within two days. However, short-term momentum faded as the news settled in, and the stock gradually declined to $4.60.

Following the latest $1 billion financing announcement, the stock did not replicate its earlier rally and instead experienced a slight decline, reflecting more cautious investor sentiment.

Heavy exposure to Bitcoin introduces volatility risk, which could impact the company’s balance sheet. Ted Kim assured stakeholders that transparency and structured reporting would help mitigate these risks.

The financing strategy is designed to offer flexibility during market swings as the company pursues its 10,000 BTC goal—a sign of the growing trend of publicly listed firms embracing cryptocurrency as a strategic reserve asset.