BitPlanet to Raise $5.1 Million Through Convertible Bonds for Bitcoin Mining Expansion

BitPlanet said on May 14 it will issue 7 billion won ($5.1 million) in convertible bonds to buy Bitcoin mining equipment and deploy the machines at overseas sites.

The board approved the simultaneous issuance of two privately placed unsecured convertible bond tranches: a 5 billion won ($3.6 million) 17th series and a 2 billion won ($1.5 million) 18th series. The subscription date is June 9, and payment is due on June 10.

All of the proceeds from the 17th series will be used to buy application-specific integrated circuit, or ASIC, equipment for Bitcoin mining. The machines will be purchased from Bitmain.

Proceeds from the 18th series will be split equally between 1 billion won ($725,000) for mining equipment purchases and 1 billion won ($725,000) for operating funds. BitPlanet plans to use the money to place mining equipment at overseas sites in Oman and Paraguay, where electricity costs are lower.

The buyer in the 18th bond sale is IBKC-Wantedlab New Technology Investment Association No. 1, a fund in which IBK Capital holds a 50% stake. BitPlanet described the deal as the first domestic investment by a mainstream financial institution in South Korea in a digital-asset treasury company.

The company said the financing will help it expand cooperation across the global mining ecosystem and build an energy infrastructure business spanning Bitcoin mining, artificial intelligence data centers and graphics processing unit distribution.

Chief Executive Officer Lee Sung-hoon called the bond sale the first step in accelerating BitPlanet's Bitcoin mining business. He added that the company aims to generate stable mining income while expanding new business partnerships with global partners.