Parataxis Holdings, a South Korean company, has announced plans to develop a Bitcoin Treasury. The move will make Parataxis the first South Korean company to create a Bitcoin Treasury. Parataxis will accomplish their plans by acquiring a majority stake in the biotech firm Bridge Biotherapeutics, which has agreed to create the Bitcoin Treasury. Parataxis will invest $18.5 million in Bridge Bio, under an agreed upon deal, to take a controlling stake in the company. Bridge Bio will then change its name to “Parataxis Korea” and will remain listed on the KOSDAQ exchange. Shareholders will still have a chance to vote against the deal. The move is another example of the corporate world taking a serious interest in Bitcoin as a reserve asset.
Parataxis Holdings LLC annouced the Bitcoin Treasury with a press release, outlining the plan to invest KRW 25 billion into Bridge Biotherapeutics to take a controlling interest in the company and to then rename it to Parataxis Korea. The company aims to create South Korea’s first Bitcoin Treasury and to allow investors to benefit from the new arrangement. Parataxis annouced that a team of Bitcoin experts will be advising the project and making sure that the acquisition strategy goes according to plan. Andrew Kim has been appointed the new CEO of Parataxis. Edward Chin, meanwhile, has joined the board of directors. The goal is to provide shareholders with exposure to a Bitcoin treasury while also developing a strong capital management approach. A shareholder meeting has been scheduled for August when more detailed will be released about the strategy.
Andrew Kim, a Capital Partner at Parataxis and now its newly appointed CEO, said that he drew inspiration from other treasury companies such as Strategy and Metaplanet. Strategy recently bought around 10,000 BTC for $1 billion, while Metaplanet has a total treasury of 10,000 BTC. Strategy is a US company, and Metaplanet is a Japanese company. Kim believes that South Korea will be the next country to have a Bitcoin treasury company. Kim would like to develop a large treasury with sound governance principles. Edward Chin, former CEO of Parataxis said that he was excited to see the Bitcoin Treasury be developed with such a strong platform. Chin argued that it is important to create a treasury now because Bitcoin only has a finite supply of tokens. Chin believes that the investment in Bitcoin will benefit shareholders and the country of South Korea.
Bridge Biotherapeutics, soon to be renamed Parataxis Korea, saw its stock price jump by 20% after the news broke of the takeover. However, the stock price is still down by 90% from its five year high. Bridge Bio was started in 2015 and develops treatments for various ailments including ulcerative colitis.
Edward Chin, founder and former CEO of Parataxis Holdings, will join the board of directors and make way for Parataxis Capital Partner Andrew Kim to become CEO. James Jungkue Lee, Bridge Biotherapeutics co-founder, will continue to lead the Biotech aspects of the firm. Shin & Kim LLC and Deloitte will act as legal and financial advisors for the treasury strategy. Parataxis is also planning on deploying other investment strategies. The company wishes to prove its commitment to advocating for Bitcoin in the Asian region.
