A number of financially distressed companies on Korea’s KOSDAQ market are turning to cryptocurrency and blockchain ventures in a last-ditch effort to avoid delisting. As their traditional business models stall and earnings falter, these firms are pivoting toward digital assets in hopes of reviving their fortunes.
One notable example is SGA, a public sector software integrator facing potential delisting due to prolonged underperformance. The company recently raised KRW 34.5 billion through a paid-in capital increase and amended its articles of incorporation to include the management and holding of blockchain-based digital assets. Following the announcement, its stock price hit the upper limit for multiple trading sessions, with some investors praising the company’s “strategic rebirth through crypto.”
Bridge Biotherapeutics, which failed in late-stage drug development, also rebranded itself as Parataxis Korea and declared a shift toward digital asset custody services. It raised KRW 20 billion in equity and issued KRW 5 billion in convertible bonds, stating its intention to build a crypto-based asset management platform. The move sparked a four-day rally in the stock market, underscoring investor enthusiasm for its new direction.
Other players such as Apt NeuroScience and BitMax have either begun acquiring substantial amounts of Bitcoin or are in the process of restructuring to support crypto-related businesses. BitMax, in particular, has drawn attention for its existing holdings of over 300 BTC, effectively operating as a “Bitcoin treasury.”
This shift comes as Korean financial regulators gradually open the door for corporations to hold and trade crypto assets—a domain previously dominated by individuals. The regulatory easing has created a rare opportunity for small-cap firms to reposition themselves in a high-growth sector.
However, experts caution against over-reliance on crypto as a short-term stock booster. Without a viable business model to back it up, this pivot could pose long-term risks. Accounting standards and disclosure requirements for digital assets remain murky, and hastily jumping on the crypto bandwagon may backfire.
For some companies, crypto may represent a last chance to reinvent themselves and protect shareholder value. But without real business fundamentals to support the shift, market sentiment could quickly turn, especially as speculative enthusiasm wanes.
