Nasdaq-listed K Wave Media Ltd. approved a strategic transformation to reposition itself as an AI infrastructure company, diverting funds raised for its Bitcoin treasury strategy in the process—and seeing its stock price fall sharply over the course of the day Monday.

Previously focused on the South Korean entertainment industry, including supporting popular K-pop groups, the company’s board of directors approved the sale of its largest wholly owned subsidiary, Play Co., Ltd., back to the unit’s previous owner. The sale eliminates $48 million in debt from K Wave’s balance sheet.

K Wave simultaneously executed an amendment to its Securities Purchase Agreement with Anson Funds, redirecting the remaining $485 million toward AI infrastructure initiatives. The funding represents what remains available from Anson’s original $500 million commitment, previously earmarked for its Bitcoin treasury strategy.

“This marks a defining inflection point for KWM,” said CEO Ted Kim, in a statement. “By exiting our legacy business, eliminating nearly all liabilities, and securing significant access to capital, we are positioning the company to become a meaningful participant in the rapidly growing AI infrastructure sector. Our goal is to build a scalable platform across data centers, compute, and critical AI technologies.”

While the firm’s shares had risen over the last week after announcing plans to tokenize South Korean entertainment IP on the Solana blockchain, K Wave (KWM) fell sharply Monday, diving nearly 25% to finish the trading day at $0.307. KWM shares are now down 25% since the start of 2026, per Yahoo Finance data.

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The capital access dwarfs K Wave’s current size. With a market capitalization of about $21 million, the $485 million funding represents 23 times the company’s current valuation. K Wave holds $18.83 million in total debt and operates with a current ratio of 0.29, indicating its short-term obligations exceed liquid assets.

K Wave Media has scheduled its annual meeting for early July, where shareholders will vote on both the subsidiary disposition and the proposed corporate rebrand to Talivar Technologies.

The firm’s move comes right as Bitcoin finds another leg up in its rebound, hitting the $80,000 mark on Monday for the first time since January. Bitcoin remains down about 36% from its peak price above $126,000 set last October.