Key Takeaways:
K Wave Media sold its last 88 Bitcoin to repay $6 million in debt, ending a treasury strategy that once aimed to make the Nasdaq-listed company one of the largest corporate BTC holders.
K Wave Media liquidated its remaining 88 Bitcoin on May 6, using the $64.2 million in proceeds to repay debt obligations tied to an April 29 amendment to its securities purchase agreement with Anson Funds, the company disclosed in a June 30 SEC filing. The sale leaves the South Korean media company with zero Bitcoin — a complete reversal from its July 2025 pledge to scale holdings toward 10,000 BTC.
"Our objective is clear: to scale our holdings toward 10,000 Bitcoin as soon as possible," CEO Ted Kim said at the time, when the company claimed access to $1 billion in total capital capacity through a $500 million convertible note agreement with Anson Funds and a $500 million standby equity purchase deal with Bitcoin Strategic Reserve.
The terms of the initial financing required at least 80% of net proceeds from the first Anson tranche to be used for Bitcoin purchases. K Wave acquired 88 BTC in July 2025 as the foundation of that strategy. By May 4, 2026, the company announced it would redirect up to $485 million of its remaining financing capacity toward AI infrastructure, including data centers, GPU compute operations, and potential acquisitions. Two days later, the Bitcoin was gone. The company's shares fell about 25% after the pivot was announced.
K Wave's exit adds to mounting pressure on the corporate Bitcoin treasury model, as smaller companies that mimicked MicroStrategy's playbook face debt covenants, counterparty risk, and Nasdaq compliance deadlines that can force liquidations at unfavorable times. The company is also dealing with two Nasdaq deficiency notices — one in January for failing to meet the $1 minimum bid price, and another in June for falling short of the required $15 million market value of publicly held shares.
Debt pressure tests the treasury model
K Wave is not alone in unwinding its Bitcoin position. Sequans sold half of its Bitcoin holdings as debt pressure mounted, and Nakamoto — the Bitcoin treasury firm led by David Bailey — executed a 1-for-40 reverse stock split in May after its shares collapsed to $0.15 following a Nasdaq delisting notice in December 2025. American Bitcoin Corp., the Trump-backed miner, announced a reverse stock split effective July 2 after its shares fell more than 95% from a post-IPO high of $14.65.
The financing structures that enabled these companies to accumulate Bitcoin often come with conditions that make the positions less permanent than they appear. Convertible debt, share premiums, and standby equity agreements all depend on sustained investor demand and favorable market conditions. When those conditions weaken, debt repayment obligations can trigger forced sales.
Strive's Ben Werkman previously warned that a prolonged Bitcoin downturn could force some treasury firms to restructure, particularly those that relied on convertible debt. K Wave's trajectory — from an aggressive 10,000 BTC target to zero Bitcoin and a full pivot to AI infrastructure within one year — illustrates how quickly the model can unravel when financing terms shift.
K Wave also plans to sell its main subsidiary, Play Co., a move designed to eliminate roughly $48 million in debt and liabilities, pending shareholder approval. The company said it has not abandoned its treasury strategy entirely but has decided to halt it while focusing on AI infrastructure investments.
This article is for informational purposes only and does not constitute investment advice.
