Parataxis commits to Korea as bitcoin treasury frontier
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.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
6 hours ago
- Korea Herald
Gov't, ruling party agree to strive to curb inflation, swiftly implement extra budget
The government and the ruling party agreed Sunday to make an all-out effort to stabilize prices and to swiftly implement the supplementary budget in an effort to better support the livelihoods of the people and spur economic growth, officials said. The agreement was made during a high-level policy coordination meeting between the ruling Democratic Party (DP) and the government held at the prime minister's residence in Seoul. The meeting marked the first of its kind since Prime Minister Kim Min-seok took office Thursday following his parliamentary confirmation hearing. "There was a shared understanding that every effort should be made to stabilize perceived inflation, as the high price levels continue to weigh on the people's livelihoods," party spokesperson, Park Sang-hyuk, told a press briefing. "The ruling party urged the government to maintain close communication with industry stakeholders to minimize price increases in processed foods and ease the burden on consumers. In response, the government agreed to actively consider the matter," he added. According to government data, consumer prices, a key gauge of inflation, increased 2.2 percent from a year earlier in June, marking the steepest on-year increase since January. Prices of processed food products, in particular, rose 4.6 percent on-year, the highest increase since November 2023, which contributed 0.39 percentage point to overall inflation last month. During the meeting, the DP requested the government to execute the second supplementary budget as quickly as possible "to avoid missing the golden window for economic recovery," and the government said it plans to execute 85 percent of the budget by the end of September, according to the lawmaker. The Cabinet on Saturday approved an extra budget bill of 31.8 trillion won (US$23.3 billion), marking the first supplementary budget under the Lee Jae Myung government. During the meeting, the government also reported that it would take measures to thoroughly prepare for natural disasters, such as floods and storms, and the two sides agreed to enhance responses to heat waves, Park noted. In his opening remarks, Kim said that the meeting serves as the key venue for coordinating the national agenda. "We plan to discuss ways to maximize the impact of the supplementary budget, public relief measures and thorough preparedness for summer disasters like heat waves," the prime minister added. Attendees from the ruling party included floor leader Kim Byung-kee, who is also serving as the party's acting leader, and Rep. Jin Sung-joon, the party's policy committee chair. They were joined by the prime minister, Yoon Chang-ryeol, chief of the Office for Government Policy Coordination, and First Vice Minister of Economy and Finance Lee Hyung-il. DP floor leader Kim urged the government to act quickly on multiple fronts, citing the need to implement the supplementary budget, ease the burden of high inflation and prepare for heat waves. (Yonhap)
Korea Herald
7 hours ago
- Korea Herald
'We're seeing AI-enhanced workflows, not replacement': Storytek CEO Sten-Kristian Saluveer
AI takes center stage as Bucheon Film Festival explores cinema's future BUCHEON, Gyeonggi Province -- The 29th Bucheon International Fantastic Film Festival opened Thursday with a bold statement on cinema's future, selecting as its opening film "About a Hero" -- a hybrid documentary by Piotr Winiewicz featuring an AI-generated screenplay trained on Werner Herzog's complete filmography. The festival's commitment to exploring artificial intelligence runs deep, with 11 AI films among its 217-title program and a three-day conference dedicated to examining how the technology is reshaping creative processes in cinema. Sunday marked the first day of the festival's AI conference at Bucheon Art Center, bringing together industry pioneers, technologists and policymakers to examine practical applications and future implications of AI-driven production. The sessions revealed both the technology's rapid development and the film industry's varied responses to its integration. Sunday's conference began with presentations from leading Korean producers working with AI technology. Roy Oh, who runs the YouTube channel Oddy Studio, premiered his short film "Color My Garden," a biographical piece about Frida Kahlo told from the artist's perspective. The film, created using tools like Midjourney and Runway, showcased the creator's signature style of blending classical art with contemporary settings. While the film at times exhibits the uncanny sleekness and occasional awkwardness of AI-generated content -- repetitive compositions, abrupt cuts between scenes -- moments of genuine visual innovation were palpable, particularly in sequences showing flowers blooming from Kahlo's body. "It's not just what AI makes, it's how we make AI tell your story," Oh said, describing his week-long production process that treats AI collaboration like "writing a book in real time." Lee Sang-wook of MBC C&I Content Lab followed with a demonstration of AI's integration into traditional television production, showing how his team enhanced space scenes in a TV show by combining AI-generated visuals with live actors. Viewers who watched the show responded positively to the hybrid approach. "Starting from prompts, we can now visualize concepts that would have cost millions," Lee said. His lab, launched in 2024, runs training workshops for aspiring creators and has produced several award-winning AI films, including "Mateo," which won the grand prize at Korea's first AI International Film Festival. The afternoon panel discussion, originally intended to focus on AI, quickly pivoted to broader industry concerns about Korea's declining theater attendance and competition from streaming platforms. Featuring festival director Shin Chul, French National Cinema Center President Gaetan Bruel and producer Lee Dong-ha, the conversation centered on Korea's struggling film industry and potential lessons from France's protective measures. Bruel outlined the French government's comprehensive support system, including mandatory "holdback" periods that reserve theatrical releases for four months before they are available for streaming. In Korea, films often appear on platforms within weeks of theatrical release. "In France, we had 181 million tickets sold last year — only a 10 percent decrease from pre-pandemic levels," Bruel noted, comparing it to Korea's nearly 50 percent drop. He emphasized that, in France, people with the most streaming subscriptions are often the most avid moviegoers. The French model mandates streaming platforms reinvest part of their revenue into local content -- a system that generated €900 million for 180 projects by 140 independent production companies. When asked about AI's impact on cinema's future, Bruel expressed measured skepticism. "Cinema is about emotions, about the infinite complexity of dialogue," he said. "While AI brings new possibilities, I have more reasons to be concerned than enthusiastic. The risk is reducing the extent of creativity." The day's most practical analysis came from Sten-Kristian Saluveer, CEO of Storytek and Strategic Advisor for Cannes NEXT, who delivered a recorded lecture mapping AI's integration across global film production. His presentation showcased how major festivals beyond BIFAN have adapted, with Rotterdam and Tribeca now accepting AI films in their official competitions. Saluveer highlighted the evolution from "AI artists" to "AI studio directors" -- creatives who combine traditional filmmaking knowledge with technical expertise. Major studios now use AI for pre-visualization, with one TV series generating 24 VFX shots in a single day versus weeks it would take using conventional methods. "We're seeing AI-enhanced workflows where the technology supports rather than replaces traditional filmmaking," Saluveer explained. The applications extend beyond visual effects into budgeting, script development and regulatory compliance -- what he termed a comprehensive "optimization paradigm." Genre filmmaking would particularly benefit from this trend, with tools like Veo helping independent horror directors create proof-of-concept materials previously requiring studio backing. Looking ahead, Saluveer predicted the rise of AI-transparent filmmaking within a few years, in which the technology becomes as ubiquitous and routine as digital cameras. "Instead of thinking narrowly about AI producing visual content, it's becoming a huge optimizer," he said, emphasizing that success requires investing in talent development over the acquisition of tools. "Great filmmakers powered with AI will make great AI films. Underskilled filmmakers will ultimately make bad films."
Korea Herald
9 hours ago
- Korea Herald
Can new policies reduce foreign firms' lead in autonomous driving?
Industry urges government to open more roads for self-driving vehicles, reduce pushback from taxi and bus drivers South Korea's autonomous vehicle industry is at a crossroads as the government prepares to unveil a new R&D roadmap to address regulatory challenges and embrace innovative technologies. With global competitors like Tesla and Waymo rapidly advancing, industry watchers suggest that the Korean government should adopt practical strategies to foster the growth of this key artificial intelligence innovation. E2E becomes new trend According to media reports on Sunday, the industry ministry plans to unveil an autonomous driving R&D roadmap later this year, aimed at overcoming the limitations of the current regulatory framework for 'rule-based or modular' self-driving technologies. The new policy is expected to adopt a hybrid approach, combining the adaptability of 'learning-based end-to-end (E2E)' technology with the safety and control advantages of rule-based modular components. Rule-based systems determine driving maneuvers primarily through predefined rules and algorithms, guided by LiDAR equipment that delivers precise, real-time 3D mapping of the surrounding environment. But these systems face drawbacks such as high costs and poor performance in bad weather conditions. Korean regulators have prioritized these systems for their safety -- predictable and explainable vehicle operation. In contrast, Tesla's recently unveiled robotaxi uses a camera-centric, learning-based E2E approach that directly translates visual data through a single neural network to control a vehicle, bypassing the 'perception' and 'planning' processes in the modular approach. While E2E systems excel in adaptability, as they are not limited by preprogrammed rules, they are often called 'black boxes' for their unexplainable decision processes, which complicates safety validation. Waymo, which previously focused on the modular approach, is actively developing E2E technologies through its End-to-End Multimodal Model for Autonomous Driving project. Limited road access, strong pushback Hyundai Motor Group is also reportedly pursuing the E2E approach through its autonomous driving subsidiary, 42dot. However, industry insiders here call for more aggressive governmental support, as the auto giant faces hurdles in advancing these technologies in Korea due to policy limitations. 'Hyundai Motor has the capacity to develop E2E technology,' said a source familiar with the matter on condition of anonymity. 'But one of the major hurdles for companies developing autonomous driving technologies, including Hyundai Motor Group, is that there is little area available to collect enough real-world data necessary for substantial technological advancement.' As of June, there were 42 government-designated areas for autonomous vehicles in Korea's 17 cities and provinces, and only 455 vehicles were approved for operation. Even after the designation of these sites, several local governments have either failed to operate AV services or have done so inefficiently, leading to low performance ratings. By contrast, China is rapidly advancing in this field with dedicated highway lanes and extensive testing zones in major cities such as Beijing and Shanghai, supporting companies such as BYD in leveraging the E2E approach for autonomous driving. In the US, 38 states have authorized extensive public road testing, providing significantly larger areas for these vehicles as of last year. 'To develop and advance E2E tech like Tesla, the government needs to designate, for example, the entire Teheran-ro (in Gangnam, a 3.5-kilometer, 10-lane road) and deploy over 100 vehicles there,' the source suggested. 'To achieve Korea's goal of commercializing Level 4 self-driving technology (where vehicles can operate fully autonomously within specific areas), regulators should focus on establishing effective policy measures for the industry.' Kim Pil-su, a car engineering professor at Daelim University, echoed that view and said, 'To spur the growth of Korea's AV industry, the government should also address and mitigate backlash from taxi and bus drivers, who view self-driving vehicles as a threat to their businesses. This pressure forces companies to conduct AV testing in less-populated areas with low demand for their vehicles, leading to inefficient data collection.' Due to these restrictions in the domestic self-driving industry, Hyundai Motor has pushed for R&D overseas. In addition to its R&D center in Korea, 42dot has two centers in Poland and the US, and is reportedly opening two more in China and Australia. Last year, 42dot completed its two-year autonomous shuttle service around the Cheonggyecheon stream area as part of a Seoul City pilot project. The city began the recruitment process for the next AV operators last month, after delaying the original schedule earlier this year due to low demand.
