Bitmax to execute a 4-for-1 capital reduction without consideration to improve its financial structure
Summary
- Bitmax said it has decided on a capital reduction without consideration by consolidating four common shares into one, seeking to improve its financial structure by offsetting accumulated losses.
- As a result, paid-in capital will fall from about KRW 21.0 billion to about KRW 5.2 billion, and shares outstanding will shrink from 41,937,104 to 10,484,276.
- Bitmax is a digital asset treasury (DAT) company that directly purchases and holds crypto assets centered on Bitcoin, and it said that when the value of those holdings rises, it tends to affect net asset value (NAV) and the share price.
Forecast Trend Report by Period
Bitmax, a Bitcoin (BTC)-focused digital asset treasury (DAT) company, is moving ahead with a capital reduction without consideration via a share consolidation to improve its financial structure.
According to an electronic disclosure filed with the Financial Supervisory Service on the 9th, Bitmax said it has decided on a capital reduction without consideration by consolidating four common shares into one. The measure aims to improve the company’s financial structure by offsetting accumulated losses.
The capital reduction will cover 31,452,828 common shares. As a result, paid-in capital will decrease from about KRW 21.0 billion before the reduction to about KRW 5.2 billion after.
The number of shares outstanding is also set to decline from 41,937,104 common shares before the reduction to 10,484,276 after.
Meanwhile, Bitmax is a digital asset treasury (DAT) company that directly purchases and holds crypto assets centered on Bitcoin. Such companies tend to see their share prices influenced as expectations grow for an improvement in net asset value (NAV) when the value of the crypto assets they hold rises.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
