Nasdaq-listed K Wave Media Ltd. has approved astrategic transformationto reposition itself as an artificial intelligence infrastructure company, reallocating fundsto finance its Bitcoin treasury strategyAs a result, the company’s stock price declined significantly on Monday.
Previously focused primarily on the Korean entertainment industry, includingsupporting popular K-pop groupsthe company’s board approved the sale of its largest wholly-owned subsidiary, Play Co., Ltd., back to its original owners. This sale reduced K Wave’s balance sheet by $48 million in debt.
K Wave also amended its securities purchase agreement with Anson Funds to reallocate the remaining $485 million to artificial intelligence infrastructure projects. This amount represents the remainder of the $500 million investment originally committed by Anson, which had previously been designated for its Bitcoin reserve strategy.
“This marks a pivotal turning point in the development of King & Wood Mallesons,” said CEO Jin Dehua in a statement. “By divesting our traditional businesses, eliminating nearly all liabilities, and securing substantial funding, we are positioning the company as a key player in the rapidly growing artificial intelligence infrastructure sector. Our goal is to build a scalable platform encompassing data centers, computing, and critical AI technologies.”
Although the company's stock rose following the announcement of its plan last week,tokenizing South Korean entertainment intellectual propertyon theSolanablockchain, K Wave (KWM) shares plunged nearly 25% on Monday, closing at $0.307. As of now, KWM's stock has declined by 25% since the beginning of 2026.Yahoo Financedata.
This funding round far exceeds K Wave’s current scale. K Wave’s market capitalization is approximately $21 million, and this $485 million funding round is equivalent to 23 times its current valuation. K Wave’s total liabilities amount to $18.83 million, with a current ratio of 0.29, indicating that its short-term liabilities exceed its current assets.
K Wave Media has scheduled its annual general meeting for early July, at which shareholders will vote on the disposal of subsidiaries and the proposed corporate name change to Talivar Technologies.
This move by the company comes as Bitcoin rebounds and rises again, reaching $80,000. On Monday, Bitcoin’s price fell for the first time since January. Currently, Bitcoin’s price remains approximately 36% below its peak of over $126,000 set in October last year.