Korbit Research Center "Bitcoin, Possible to Emerge as Corporate Asset in Korea"

Korbit Research Center under the domestic virtual asset (cryptocurrency) exchange Korbit announced on the 7th that it has published a report titled 'Bitcoin, Becoming a Corporate Asset: From Holding Strategies to Business Models', which can serve as a reference for domestic corporations entering the virtual asset market.

Korbit Research Center argued that, based on the analysis of the business model (SWOT) of Coinbase, a leading virtual asset business in the United States, the domestic market also needs to strengthen regulatory capabilities, develop customized services for institutional clients, and diversify revenue structures. As the market is in a transitional period where institutional participation and the establishment of a regulatory foundation are taking place, it implies the need for preparation in advance through the Coinbase case.

The analysis of the Bitcoin holdings of U.S. listed corporations showed that companies holding Bitcoin are mainly virtual asset specialized corporations, and general corporations are also expanding their Bitcoin investments through fundraising.

Virtual asset specialized corporations like Galaxy Digital have been holding Bitcoin acquired through business activities or proceeding with additional purchases using retained cash. As strategies accumulate Bitcoin for long-term holding with large-scale funds raised through convertible bonds and stock issuance, the number of general corporations benchmarking these strategies is also increasing. After the approval of the Bitcoin spot ETF in early 2024, indirect investment by financial institutions is also rapidly spreading.

Additionally, Korbit Research Center examined cases that domestic listed corporations can refer to before investing in virtual assets based on U.S. examples and predicted companies among domestic corporations that have a high incentive to hold virtual assets.

It was found that companies with large total assets, sufficient free cash flow, and active investment activities are more likely to invest in virtual assets. This suggests the need for a policy approach that considers not only allowing corporate market participation but also more sophisticated analysis of investment demand, securing financial soundness, diversifying portfolios, and discovering future growth engines.

Kang Dong-hyun, Lee Sun-young, and Jung Ji-sun, researchers at Korbit Research Center, stated through this report, "Although the full allowance of general corporations and financial institutions remains a mid- to long-term task, it is clear that a turning point has been established for the full-scale participation of corporations in the market," and "We hope this report provides useful information to corporations and investors seeking new opportunities with the allowance of virtual asset investment."