Bithumb conducts 80 billion KRW paid-in capital increase… Strengthens control through "Satoshi Holdings"

Costar-listed company Bitmax raises operating funds through a paid-in capital increase of approximately 80 billion KRW. The company plans to issue new shares through a third-party placement to raise funds.

On December 19, Bitmax announced via a notice that it will issue 4,705,882 common shares to Satoshi Holdings. The issue price is 1,700 KRW per share, raising a total of about 80 billion KRW. The new shares will be issued through a third-party placement, and it is expected that existing shareholders’ equity will be diluted to some extent.

The target of the new share placement, Satoshi Holdings, is reportedly a co-investor in Meta Platform’s largest shareholder portfolio. Some analysts point out that this move essentially has the nature of expanding operational rights-friendly holdings and can also be interpreted as an effort to strengthen the control of the largest shareholder.

The funds raised by Bitmax through this capital increase will be used for future operational expenses and overall corporate activities. Recently, cases of small and medium-sized IT companies or blockchain-based enterprises conducting paid-in capital increases to raise operating funds, enter new businesses, or improve financial structures have continued to emerge.

The financial investment community believes that announcements of paid-in capital increases by companies may trigger cautious sentiments among investors. Especially compared to external investors, if targeted at related parties, it directly involves operational control issues, which may lead to increased stock price volatility. However, if the purpose of the funds is clear and growth strategies are well-defined, it may also receive positive evaluations.

This trend is interpreted as small and medium-sized listed companies taking action to secure liquidity in advance amid economic slowdown and high interest rate environments. In the future, the overall industry related to this may continue to carry out structural capital raising.