Dunamu, the operator of the virtual asset exchange Upbit, hit a 3-year, 5-month high as expectations grew that it would enter the U.S. stock market after being incorporated as a subsidiary of Naver.
According to Securities Plus Unlisted on the 30th, the share price of unlisted Dunamu rose intraday to 405,000 won the previous day, marking the highest level in 3 years and 5 months since Apr. 22, 2022 (407,000 won).
Dunamu's share price fell to the low 300,000-won range on 25th, when the plan to be incorporated as a Naver subsidiary became known, then rebounded the next day and has been on an upward trend. The day's trading volume was 46,328 shares, more than 10 times the usual.
Earlier, Naver disclosed on 25th that it is discussing various cooperation plans, including a comprehensive stock exchange, to incorporate Dunamu as a wholly owned subsidiary through its fintech subsidiary Naver Financial. The influx of buying into the unlisted Dunamu is seen as stemming from a strong outlook that the merged entity will seek a listing on the U.S. Nasdaq going forward.
In the industry, there is an outlook that the two companies will first build a won-denominated stablecoin ecosystem in Korea through Naver Financial and push to link payments with various Naver services such as Naver Shopping and Plus Store. After that, they are looking to connect Naver's global-facing services to build a powerful stablecoin ecosystem.
In the securities community, reports say the merged entity's market capitalization could reach at least 50 trillion won if the two companies' new business draws interest from global investors. For the U.S. exchange Coinbase, the Nasdaq market capitalization is around 120 trillion won.
Dunamu and Naver Financial plan to hold their respective board meetings in late next month to discuss the stock exchange ratio and other matters.
Meanwhile, Naver's share price also surged for a third straight trading day, entering the top 10 by market capitalization. According to the Korea Exchange, Naver's share price is 274,500 won. Its market capitalization swelled to 43.0056 trillion won. Woori Technology Investment, which holds 7.2% equity in Dunamu, jumped 20.40% the previous day, and Hanwha Investment & Securities, which holds 5.9% equity, rose 17.20%.