KOSDAQ-Listed Companies Face Losses After Bitcoin Investments

Several small KOSDAQ-listed South Korean companies that adopted a digital asset treasury model by borrowing to invest in Bitcoin are now experiencing significant financial losses and balance-sheet stress. According to NS3.AI, Bitmax, a company that transitioned from augmented reality to Bitcoin in 2025, has announced a 4-to-1 share consolidation and capital reduction following a dramatic stock price drop from a 52-week high of approximately $5.12 to about $0.63, marking an 88% decline. These stocks have suffered greater losses compared to Bitcoin's approximate 12% decline over the past year, underscoring the additional volatility introduced by leverage, convertible bonds, and, in one instance, a USDT-backed loan layered onto their Bitcoin exposure.