Quick Take
- South Koreas Mirae Asset is injecting 50 billion won worth of fresh capital into Korbit, following its acquisition of the South Korean crypto exchange.
- The funds will reportedly be used to improve its financial structure and address urgent management needs.
DigitalX, the operator of South Korean crypto exchange Korbit and a newly acquired affiliate of Mirae Asset Group, has reportedly resolved to raise roughly 50 billion Korean won ($35.3 million) through a capital increase.
According to South Korean news agency News1, DigitalX's board of directors approved the issuance of more than 10 million new common shares at 4,961 won ($3.5) per share. The entire issuance will reportedly be allotted to Mirae Asset Consulting, which owns DigitalX. Payment is due on Aug. 27, News1 reported.
DigitalX stated that the funds will be used to improve its financial structure and address urgent management needs, per the report. A company spokesperson declined to confirm the news in a phone call with The Block.
Mirae Asset completed the acquisition of Korbit in July, with Mirae Asset Consulting acquiring 97.15% of the company for roughly 130 billion won ($91.5 million). South Korea's Fair Trade Commission approved the acquisition last month.
Rebranding
Earlier this week, Korbit's operating company announced that it is changing its corporate name from Korbit Co. to DigitalX Co., while the digital asset trading platform will maintain the existing brand for the time being.
Mirae Asset Group previously announced plans to develop DigitalX as a platform encompassing both digital and traditional financial assets, positioning it as a core element of the “Mirae Asset 3.0” strategy.
Korbit is one of South Korea's five fully licensed crypto exchanges authorized to provide fiat-to-crypto trading services to customers. Currently, the local market is dominated by the two largest players — Upbit and Bithumb.
Meanwhile, other major Korean financial institutions have also been acquiring stakes in local crypto exchanges.
Hana Bank acquired a 6.55% stake in Dunamu, the operator of Upbit, while three Samsung affiliates, including Samsung Securities, took a combined 4% stake in the same company. Separately, Korea Investment & Securities secured roughly a 20% stake in Coinone with OKX Ventures.