K Wave Media, Inc. (Nasdaq: KWM) (“K Wave” or the “Company”) Announces entering into a securities purchase agreement for $500 Million Equity Purchase Facility to Support Bitcoin Treasury Strategy

Rhea-AI Summary

K Wave Media (Nasdaq: KWM) has entered into a $500 million securities purchase agreement with Bitcoin Strategic Reserve KWM LLC to implement a Bitcoin-centric treasury strategy. The company aims to become the 'Metaplanet of Korea,' following Metaplanet Inc.'s successful model which yielded over 4,000% returns in 2024. KWM plans to allocate significant proceeds to purchase, hold, and optimize Bitcoin yields, while also operating Bitcoin Lightning Network nodes. The strategy includes using BTC for content and K-pop merchandising in a WEB3 environment, allowing investors to participate in Korean film and K-pop projects. This initiative positions KWM among the first publicly traded media companies to integrate Bitcoin into its core treasury operations, combining digital media with decentralized finance.

Positive

• Secured $500 million equity purchase facility to strengthen balance sheet and fund Bitcoin treasury strategy
• Strategic alignment with successful business model of Metaplanet Inc. which achieved 4,000% returns in 2024
• Expansion into WEB3 environment enabling Bitcoin transactions for content and K-pop merchandising
• Potential for additional revenue through Bitcoin yield optimization and Lightning Network operations
• Funds will also support working capital and M&A activities for content and K-POP business expansion

Negative

• Significant exposure to Bitcoin's price volatility could impact company's financial stability
• Substantial capital allocation to cryptocurrency might limit traditional business investment opportunities
• Implementation risks associated with integrating Bitcoin infrastructure and WEB3 technologies

Insights

Financial Strategist

KWM's $500M Bitcoin treasury strategy mirrors Metaplanet's successful model, signaling major strategic pivot with significant balance sheet implications.

K Wave Media's $500 million equity purchase facility represents a pivotal strategic shift that warrants careful analysis. The company is executing a dramatic transformation by following Metaplanet Inc.'s playbook—a strategy that reportedly delivered 4,000% returns in 2024. While ambitious, this move fundamentally alters KWM's risk profile and corporate identity.

The structure involves selling equity through a securities purchase agreement to Bitcoin Strategic Reserve KWM LLC, with proceeds allocated to Bitcoin acquisition, Lightning Network nodes, and Bitcoin infrastructure investments. This represents more than a diversification tactic—it's a wholesale treasury transformation with significant balance sheet implications.

Beyond capital allocation, KWM plans to integrate Bitcoin into its operational ecosystem, enabling content and merchandise purchases with BTC in a Web3 environment. This creates a potentially virtuous cycle where treasury holdings could appreciate while facilitating new revenue channels through cryptocurrency transactions.

Critically, this move shifts KWM from a pure media company to a hybrid entity blending entertainment assets with cryptocurrency exposure. This transformation could attract crypto-focused investors while potentially alienating traditional media investors seeking pure-play exposure. The dual deployment strategy—using proceeds for both Bitcoin purchases and traditional business expansion through M&A—reflects a balanced approach but introduces execution complexity across divergent business domains.

While the Metaplanet comparison provides a compelling narrative, investors should note that single-company comparisons offer limited predictive value, especially when assessing strategies highly sensitive to cryptocurrency market conditions.

KWM declares strategic intent to become “the Metaplanet of Korea,” following the model of Metaplanet Inc., 2024’s top-performing global stock with a return of over 4,000%

NEW YORK and SEOUL, South Korea, June 04, 2025 (GLOBE NEWSWIRE) -- K Wave Media, Inc. (Nasdaq: KWM) (“K Wave” or the “Company”), the first Korean media alliance listed on Nasdaq, announced today that it has entered into a securities purchase agreement with Bitcoin Strategic Reserve KWM LLC, providing for the sale by the Company of up to $500 million of ordinary shares.

Proceeds from the facility will be used to support the Company’s Bitcoin-centric digital asset treasury strategy as well as for working capital and M&A activities, further expanding its content and K-POP related businesses. 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 (BTC) — positioning itself among the first publicly traded media companies to integrate BTC directly into its core treasury operations. In addition, the Company plans to operate Bitcoin Lightning Network nodes and invest in Bitcoin-native infrastructure to enhance decentralization and facilitate on-chain transaction rewards.

K Wave is looking to be the “Metaplanet of Korea” — referencing Japan’s Metaplanet Inc., which became the #1 performing stock globally in 2024 and a top performer in 2025 after adopting a Bitcoin reserve strategy. The Company believes a similar model — combining public market access with a focused Bitcoin treasury initiative — will resonate with investors across Asia and the globe. With its growing media and entertainment businesses, BTC treasury, and the utilization of BTC by KWM, will allow consumers to experience KWM’s content and K-pop merchandising in a WEB3 environment and become a catalyst for more rapid growth.

The Company’s asset treasury strategy reflects its commitment to innovation and forward-looking asset management. Key initiatives under the strategy include:

• Acquiring and holding BTC as a primary corporate reserve asset
• Reinvesting BTC yields into additional Bitcoin purchases and infrastructure initiatives to deepen its engagement with the Bitcoin ecosystem.
• Allowing KWM’s consumers to purchase KWM’s content and K-pop merchandising utilizing BTC in a WEB3 environment. Investors can invest in top-quality Korean film and K-pop projects utilizing approved coins by KWM, including BTC.
  

By adopting Bitcoin as its core reserve asset, K Wave aims to strengthen its balance sheet with the world’s most secure and decentralized digital currency while aligning itself strategically with the growing global Bitcoin economy and Web3 future.

Choi, Pyeungho, Chairman of the Board of KWM, commented:

“K Wave Media’s bold adoption of Bitcoin as a treasury reserve asset is a visionary move that signals the growing convergence between digital media and decentralized finance. We are proud to support K Wave’s mission to lead Web3 integration in the content space and believe this strategy will create strong, long-term value for its shareholders.”

Ted Kim, Co-Interim CEO of K Wave Media, added:

“At K Wave, we are reimagining the future of media — and that includes our financial foundation. Bitcoin offers not just a store of value, but a foundation for innovation, independence, and global scalability. By embedding BTC into our core strategy, we’re reinforcing our commitment to decentralization, agility, and future-facing value creation. This is a defining step forward for K Wave and for the future of creative finance that will further assist KWM to produce Korea’s best content and help position KWM in the K POP’s entire ecosystem by allowing it to expand to concert management and music distribution, among others.

About K Wave Media

Founded in 2023 and headquartered in the Cayman Islands, K Wave Media Ltd is a diversified entertainment company with operating companies in Korea producing high-quality K-content, K-pop merchandising, and K-entertainment investments. With a strong focus on creator empowerment and blockchain integration, K Wave delivers unique customer experiences to a global audience. The company is redefining the intersection of entertainment, technology, and finance by building an ecosystem that supports decentralized ownership, real-time creator monetization, and crypto-native engagement.

This press release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. The Company's actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including market conditions, regulatory developments, and the Company's ability to successfully integrate the acquired business. The reports filed by the Company with the Securities and Exchange Commission discuss these and other important factors and risks that may affect the Company's business, results of operations and financial conditions. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

Media Contact 
Red Rooster PR 
Evan Sneider 
esneider@redroosterpr.com

FAQ

What is the size of KWM's equity purchase facility announced in June 2025?

K Wave Media announced a $500 million equity purchase facility through a securities purchase agreement with Bitcoin Strategic Reserve KWM LLC.

How does KWM plan to use the proceeds from its $500M facility?

KWM plans to use the proceeds for Bitcoin treasury operations, working capital, M&A activities, and expansion of content and K-POP related businesses.

What is KWM's strategy for Bitcoin integration?

KWM plans to purchase and hold Bitcoin as a reserve asset, operate Lightning Network nodes, reinvest BTC yields, and enable BTC payments for content and K-pop merchandising in a WEB3 environment.

Why is KWM adopting a Bitcoin treasury strategy?

KWM aims to follow the successful model of Metaplanet Inc., which achieved over 4,000% returns in 2024 after implementing a similar Bitcoin reserve strategy.

How will KWM's Bitcoin strategy benefit its media business?

The strategy will enable WEB3 integration for content consumption, allow Bitcoin payments for merchandise, and provide opportunities for investors to participate in Korean film and K-pop projects using approved cryptocurrencies.