Bitmax Converts CB Interest to '0%'... Saves Over 3 Billion Won Annually in Financial Costs

KOSDAQ-listed company Bitmax is set to enhance its corporate value through a bold improvement of its financial structure.

On March 9, Bitmax announced that it will completely eliminate the coupon rate and maturity-guaranteed yield for its 2nd, 3rd, and 4th convertible bonds (CB). This measure was finalized with the unanimous consent of all bondholders, and as a result, the company will save more than 3 billion won per year in fixed financial costs.

This decision goes beyond simple cost-cutting, reflecting the Bitmax management’s strong commitment to improving the company’s financial structure. Typically, interest expenses on convertible bonds accumulate as liabilities, significantly burdening a company’s profit and loss structure and cash flow.

By adjusting the CB interest rate—previously as high as 4.9%–5%—to 0% (interest-free), Bitmax has established a ‘performance leverage’ structure in which operating profit is directly translated into net profit.

A company representative stated, “The annual reduction of interest expenses by more than 3 billion won will directly improve our pre-tax profit. This is expected to boost earnings per share (EPS) and serve as a powerful trigger for a rise in the stock price.”

Bitmax has also proactively managed its capital structure by acquiring and redeeming 10 billion won worth of the 4th convertible bond before maturity.

This interest-free CB decision is seen as an extension of the company’s financial soundness strategy, alleviating market concerns about potential overhang and demonstrating its commitment to protecting shareholder value.

Bitmax plans to actively utilize the enhanced cash liquidity from reduced financial costs to invest in new businesses, research and development (R&D), and shareholder return policies, all aimed at increasing corporate value.

A Bitmax official emphasized, “This measure is a strategic decision to fundamentally improve the company’s financial fundamentals and secure the capacity for sustainable growth investments. By freeing ourselves from the shackles of interest expenses, we will accelerate our performance turnaround, strengthen market trust, and ensure that our shareholders receive a fair valuation of the company.”

This content was produced with the assistance of AI translation services.