K Wave Media set to raise $500 million for Bitcoin treasury amid Standard Chartered's warning

Bitcoin (BTC) trades under $105,000 on Wednesday amid K Wave Media's plan to raise $500 million via a securities purchase agreement to build a Bitcoin treasury, a move that mimics Metaplanet's model. The announcement comes amid warnings from Standard Chartered's Geoffrey Kendrick that a Bitcoin price drop below $90,000 could result in the liquidation of half of the corporate holders.

K Wave reveals interest in Bitcoin treasury despite Standard Chartered's caution

Nasdaq-listed entertainment firm K Wave Media (KWM) announced that it has entered a securities agreement with Bitcoin Strategic Reserve KWM LLC for the sale of up to $500 million of its shares. 

The company will use the proceeds as working capital and to fund its Bitcoin treasury, according to a press release on Wednesday. K Wave also plans to operate Bitcoin Lightning Network nodes and invest in Bitcoin-native infrastructure to enhance decentralization and generate on-chain transaction rewards.

"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," said Ted Kim, Co-Interim CEO of K Wave, in the press release.

K Wave's Bitcoin treasury strategy is modeled after that of Japanese firm Metaplanet. The company noted that it plans to become the "Metaplanet of Korea," claiming that Metaplanet's stock performance in 2024 was the best globally following its shift to a Bitcoin treasury.

Following the announcement, KWM's stock price surged by over 130% on Wednesday.

Semler Scientific also announced the purchase of 185 BTC for approximately $20 million at an average price of $107,974 per Bitcoin, according to a filing submitted to the Securities & Exchange Commission (SEC) on Wednesday. The company made the Bitcoin purchase between May 23 and June 3, boosting its Bitcoin holdings to 4,449 BTC.

More than 90 companies have currently adopted a Bitcoin treasury strategy, according to data from BitcoinTreasuries.net. In the past week alone, more than eight companies have disclosed plans to launch a Bitcoin treasury, including President Donald Trump's media company, Trump Media Group.

Bitwise Europe's Head of Research André Dragosch stated on X that the speed at which institutions are adopting Bitcoin is "mind-blowing."

However, Standard Chartered's Global Head of Digital Assets Research, Geoffrey Kendrick, has warned that the rise in Bitcoin treasury companies could be risky in the long run.

Kendrick stated in a note to investors on Tuesday that companies replicating Strategy's Bitcoin model have acquired nearly 100,000 BTC over the past two months. However, he predicted that non-crypto companies with Bitcoin treasuries could face liquidation if BTC moves below $90,000. He hinted that Bitcoin's volatility may drive its price lower than the average purchasing price of the holdings of these companies, forcing them to liquidate their BTC assets. 

"Bitcoin price volatility in and of itself may drive the BTC price below the average purchase prices of many new treasuries," Kendrick stated.

He further noted that corporate Bitcoin adoption has driven BTC demand in the past few months, but that trend could see a reversal in the long run.

"Bitcoin treasuries are adding to Bitcoin buying pressure for now, but we see a risk that this may reverse over time," Kendrick added.