"Could a Korean Bitcoin Accumulation Strategy Emerge?"

# South Korea Anticipates Rise of 'Local MicroStrategy' Amid Corporate Crypto Investment Moves In South Korea, the corporate sector is gearing up for cryptocurrency investments, fueling anticipation for a "Korean MicroStrategy." MicroStrategy, a Nasdaq-listed software firm, is renowned for its Bitcoin acquisition strategy through convertible debt issuance, holding the largest corporate Bitcoin stash in the U.S. ## MicroStrategy Hints at Further Bitcoin Purchases Industry sources revealed on the 20th that Michael Saylor, co-founder of MicroStrategy, indicated another Bitcoin buy by posting the "Saylor Tracker" chart on October 18. Historically, this chart has preceded significant Bitcoin acquisitions by the firm. Earlier this month, MicroStrategy bolstered its holdings, purchasing 13,990 Bitcoins between October 5 and October 11, amounting to approximately 1.89 trillion KRW ($1.4 billion). This latest purchase brings its total Bitcoin holdings to 568,840 BTC. MicroStrategy’s aggressive Bitcoin strategy has elevated its stock performance. In October 2022, its stock price soared to record highs, surpassing Nvidia in percentage gains, underscoring the effectiveness of its leveraged Bitcoin investments. ## The Impressive Returns of MicroStrategy's Bitcoin Approach MicroStrategy has consistently utilized financial instruments like convertible bonds to grow its Bitcoin holdings. As of October 2022, the company's annualized return from Bitcoin investments was 55%, driven by a significant market value increase. Bitcoins bought for $8.3 billion (11.38 trillion KRW) are now worth $15 billion (20.58 trillion KRW), showcasing the huge profitability of its strategy. Despite bond issuance at a 1.569% interest rate, MicroStrategy operates like a Bitcoin-focused leveraged fund, with an estimated annual ROI of 53.4% as of last year. ## MetaPlanet of Japan Follows MicroStrategy's Lead in Bitcoin Acquisition Following MicroStrategy's example, Japan's MetaPlanet has upped its Bitcoin holdings. On October 19, MetaPlanet acquired an additional 1,004 BTC, raising its total to 7,800 BTC. Previously a hotel and tourism-focused company, MetaPlanet has now pivoted, making Bitcoin investments its core strategy. It issues corporate and convertible bonds to finance its cryptocurrency purchases, earning the nickname "Japan’s MicroStrategy." MetaPlanet's share price now closely correlates with Bitcoin prices, highlighting that its cryptocurrency strategy significantly impacts its corporate valuation. ## South Korea Awaits Its Own 'MicroStrategy' South Korea might see its own versions of MicroStrategy by July 2024. New regulations will enable over 3,500 entities—ranging from publicly traded non-financial firms to professional investor-registered companies—to open virtual asset accounts for investment and treasury purposes. Domestic cryptocurrency exchanges like Upbit and Bithumb are preparing to cater to corporate investors with specialized services. Industry experts suggest companies like Wemade and BitMax as potential candidates for Korea’s MicroStrategy equivalent. Wemade, known for issuing the K-crypto token WEMIX, is reportedly South Korea’s largest Bitcoin-holding publicly traded firm, with 223 BTC. Recently, BitMax, a KOSDAQ-listed company, increased its Bitcoin holdings by acquiring 28 BTC, bringing its total to 165 BTC. The gap between BitMax and Wemade has now narrowed to just 58 BTC, as BitMax positions virtual assets as a crucial strategic asset. With regulatory changes opening corporate access to cryptocurrency markets and global precedents in place, South Korean companies are poised to adopt Bitcoin-centric strategies that could reshape valuations and market dynamics. This represents another significant milestone in the integration of traditional industries and blockchain technology.