Corporations are increasingly entering the virtual asset TREASURE business. Virtual asset TREASURE refers to the practice of corporations holding and managing a portion of their reserves in virtual assets. Corporations expect effects such as diversified investment and inflation hedging through the virtual asset TREASURE business.
The problem is that due to the inherent characteristics of virtual assets, which have high price volatility, excessive leveraged investment could harm capital soundness. The financial authorities have decided not to provide specific guidelines for now, viewing the virtual asset TREASURE business as a unique financial strategy for corporations, but they plan to closely monitor leveraged investments.
According to the Financial Supervisory Service's electronic disclosure system (DART) on the 13th, Thumbage and AP Healthcare have recently added 'virtual currency business' to their articles of association and are preparing for the virtual asset TREASURE business.
The entity that ignited the virtual asset TREASURE business is the American company MicroStrategy (now known as Strategy). Strategy has purchased nearly 630,000 bitcoins, valued at roughly 100 trillion won at the current bitcoin price. Over the past two years, Strategy's stock price has surged more than tenfold as it positioned itself as a leading bitcoin TREASURE.
Domestic corporations have started the virtual asset TREASURE business, claiming to be 'Korea's Strategy.' Beginning with BitMax and Bridge Biotherapeutics (now known as Parataxis Korea), Thumbage, and AP Healthcare announced their entry into the virtual asset TREASURE business as of last June. Their stock prices have jumped in the short term, with increases ranging from 1.5 to 3 times.
However, these corporations do not have much cash on hand, prompting them to seek funding to purchase bitcoins. A notable example is BitMax issuing convertible bonds (CB) worth 40 billion won for bitcoin purchases.
As of the end of the first quarter, Thumbage has only 1.1 billion won in cash-equivalent assets, while AP Healthcare has 1.7 billion won. Without separate capital funding, pursuing a virtual asset TREASURE strategy is unfeasible.
A source from the financial investment industry noted, 'The virtual asset TREASURE strategy is effective only when financially solid corporations undertake it to diversify risk and allocate assets,' adding, 'In cases where capital is raised to purchase virtual currencies, it may actually increase risk.'
There are still institutional uncertainties. As corporations are unable to improve accounts for trading virtual assets, they must secure virtual currency through over-the-counter transactions and other means.
While the Financial Services Commission is gradually loosening restrictions on corporations trading virtual assets, the current opening is limited to non-profit entities, with plans to expand access in the second half of this year to corporations designated as professional investors, excluding financial companies. Plans regarding general listed companies have yet to be determined.
Since the financial authorities recognize the virtual asset TREASURE business as a financial strategy for corporations, it seems they will not impose regulations immediately. However, it has been stated that they will scrutinize excessive leveraged investment that could harm capital soundness.
A financial authorities official stated, 'The decision of corporations to opt for a virtual asset TREASURE strategy and the consequent rise in their stock prices is merely a market evaluation, and there is no need for the government to provide guidelines.' However, he added, 'Considering the particularities of the domestic market situation, it appears necessary to impose limits on leveraged investments.'