K-Pop Firm's Stock Plunges as It Dumps Bitcoin Treasury Plan for AI Pivot

In brief

• K Wave Media's board approved a strategic transformation to reposition the company as an AI infrastructure-focused entity.
• The Nasdaq-listed company secured access to $485 million in funding from Anson Funds, which was previously committed to its Bitcoin treasury strategy.
• Shareholders will vote on a potential rebrand to Talivar Technologies at the company's annual meeting in early July.

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 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 data.