ChainCatcher report: In 2025, several small Korean publicly listed companies raced to replicate Strategy’s Bitcoin treasury model by borrowing funds to purchase Bitcoin. Now facing setbacks, Bitmax serves as a prime example. Last year, Bitmax shifted its strategy to bet on Bitcoin, holding 551 BTC acquired at a cost of approximately $55 million. Of these, 539 BTC were obtained through 13 over-the-counter transactions with the chairman, at a total premium of about $6 million. Due to mounting losses, the company announced on March 9 a 4-to-1 share consolidation, reducing its paid-in capital from $14.5 million to just $3.6 million. The next day, its stock plummeted over 10% to around $0.63. The contrast with Strategy is stark: while Bitcoin has declined only 12% over the past year, Strategy has fallen about 70%, but Bitmax has crashed 88%. Moreover, when Bitcoin rebounded, Bitmax failed to follow suit—indicating that the market has already priced in company-specific risks. Analysts note that, without scale, access to capital markets, or institutional credibility, this model carries risks far exceeding its potential returns.
Bitmax Stock Drops 88% as Bitcoin Strategy Fails
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Summary
Bitcoin news emerged as Bitmax’s stock plummeted 88% from its peak following a failed Bitcoin investment strategy. The company spent $55 million to purchase 551 BTC, with 539 of those acquired at a $6 million premium through 13 private transactions with the chairman. On March 9, the company announced a 4-for-1 share consolidation, reducing paid-in capital from $14.5 million to $3.6 million. The move triggered a more than 10% drop in shares the following day to $0.63. Market analysts highlighted the lack of scale and institutional credibility as key risks in the strategy.
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