South Korea’s capital market is poised for a major innovation. US digital asset hedge fund Parataxis plans to launch the nation’s first bitcoin treasury platform — a corporate strategy where companies hold bitcoin as part of their treasury, treating it like cash or bonds.

While this strategy has gained traction among some US firms betting on crypto’s long-term value, it remains controversial due to bitcoin’s volatility and unclear regulations.

Parataxis is entering the market by acquiring Kosdaq-listed biotech firm Bridge Biotherapeutics, transforming it into Parataxis Korea to introduce this model locally.

“South Korea is uniquely positioned,” said Andrew Kim, CEO of Parataxis Korea, in a Zoom interview on Tuesday.

“With strong institutional interest and favorable policy timing, Korea is an ideal launchpad for this innovative treasury strategy, one already proven transformative in the US market.”

Inspired by pioneers like Strategy, which bought billions in bitcoin starting in 2021 and boosted its shares by over 3,000 percent, Parataxis aims to bridge institutional hesitancy by embedding crypto holdings in a regulated listed company — potentially reshaping treasury management across Asia.

Globally, 126 publicly listed companies hold nearly 820,000 bitcoins valued at $88.8 billion. In Korea, regulatory barriers limit corporate bitcoin investment. While selling is legal, buying is restricted mainly to nonprofits and exchanges, with broader access opening only to professional investor firms later this year.

Currently, just three Korean listed firms reportedly hold bitcoin.

Kim acknowledged bitcoin’s volatility, but stressed that operational safeguards and partner quality are equally important. “Bitcoin can be volatile. We’re fully aware of that. But we’ve operated professionally in this market for six years,” said Kim, also a partner at New York-based Parataxis Capital, which manages digital asset funds for wealthy individuals and pension funds.

He emphasized Parataxis’ focus on risk management and governance rather than hype. “At this stage, it’s about doing one thing well. Building a sustainable bitcoin treasury platform with institutional-grade compliance and controls.”

Parataxis is monitoring regulatory changes closely and working with top Korean legal and financial experts, including law firm Sejong and Deloitte.

Beyond bitcoin price gains, Parataxis plans “creative capital markets transactions” to grow “bitcoin per share,” a metric popularized by MicroStrategy founder Michael Saylor.

“It’s similar to earnings per share, but here the goal is to compound growth in bitcoin per share over time,” Kim explained. “This aligns management incentives to create more bitcoin per share while pursuing value-creative equity transactions.”

Kim underscored the firm’s long-term vision and commitment to strong corporate governance.

“We’re here for the long term, building a platform with the highest standards for ourselves and our public shareholders,” he said. Plans include appointing board members with expertise in securities law and digital assets.

Unlike many foreign private equity investors who typically exit Korean startups within a few years, Kim stressed Parataxis’ lasting commitment.

“When I say long term, I truly mean long term. We’re putting Parataxis’ name on this, and reputation is everything.”

Last week, Parataxis Korea launched a $100 million fund to scale its bitcoin treasury platform, deploying capital selectively to tap what Kim called “an incredibly attractive opportunity” in Korea’s digital and institutional markets.

Kim expects more Korean companies to explore bitcoin treasury strategies as regulations clarify, with Parataxis leading by example.

“Bitcoin and digital assets aren’t just a speculative bubble,” he said. “We see them as emerging asset classes, like real estate or venture capital once were, steadily gaining institutional acceptance worldwide.”

hnpark@heraldcorp.com