Get Ready for BTS NFT: HYBE Acquires $ 421 Million Stake in Crypto Firm, Launches Collectibles JV
HYBE, the home of BTS superstars, is officially entering one of the most discussed and lucrative digital markets of 2021: NFTs.
Not only that, but it throws considerable weight behind the crypto craze via a new joint venture with Korean fintech firm Dunamu, which operates a crypto exchange called Upbit.
The strategic partnership will see HYBE acquire this Korean news site Impulse reports 861,400 shares of Dunamu for 500 billion South Korean won (about $ 421 million at current exchange rates). Dunamu meanwhile, according to a regulatory filing, will acquire 2,302,570 shares of HYBE for 700 billion South Korean won ($ 590 million).
Counter reports that the shares are exchanged “through a capital increase by allocation by a third party”, and that HYBE acquires a 2.5% stake in Dunamu, while Dunamu takes possession of a 5.6% stake in HYBE.
The news comes on the same day (November 4) that HYBE released its third quarter 2021 results, posting revenues of 341 billion South Korean won ($ 288 million), an increase of 79.5% or 151 billion. South Korean won ($ 127 million) compared to the same quarter in 2020.
HYBE’s entry into the NFT market through its partnership with Dunamu was unveiled today (November 4) during the HYBE 2021 corporate briefing with the community, by company president Bang Si-hyuk, who stepped down as CEO of HYBE in July.
The event Lenzo Yoon, CEO of HYBE America, and Scooter Braun, CEO of HYBE America, also sold his company Ithaca Holdings to HYBE for $ 1 billion in April.
Speaking at the event, Bang Si-hyuk said, âHYBE and Dunamu are planning to develop an NFT business as part of a new joint venture, which will allow the artist only IP content and products that HYBE has presented so far become digital assets for fans. â.
Bang Si-hyu also introduced Korean crypto millionaire Song Chi-Hyung, chairman of Dunamu, who explained that Dunamu’s goal is to create an âindustry standard for blockchain and fintechâ.
Song Chi-Hyung refers to non-fungible tokens (NFTs) as âthe hot topic of the fintech industry this yearâ.
âI think the word ‘irreplaceable’ was used in one of BTS’s songs,â he said. âIrreplaceable, which means something unique and one of a kind. You can think of an NFT as an irreplaceable digital asset that can be safely and reliably verified so that everyone can trust that there is only one in the world. Such digital assets are created when specific digital content or products receive unique value through blockchain technology. “
He added, âThe fandom culture and industry itself is maturing to the point where the content and IP products of HYBE artists presented by HYBE are now at a sufficient stage to be transformed into digital assets through these technologies â.
Explaining what this means in practice, Bang Si-hyuk used the example of physical collectible photo cards from HYBE artists, some of which are produced in limited quantities and therefore traded by fans.
Collectibles like these cards will be digitally authenticated by being minted as NFT and will feature interactive content like pictures, music, or artist voices when you click on the cards.
Owners of these cards will also be able to redeem and store them on HYBE’s fan community platform, Weverse.
“It looks like it won’t be long before we can use digital photo cards within the platform to create a virtual space with our avatars, and fans can show such space to each other and to the artists. . “
Bang Si-hyuk added, âWe are working with Dunamu to create a way to extend the fan experience in a more diverse and secure way, for example by digitally authenticating the uniqueness of these photo cards and making them permanent, but also by allowing them to be collected, traded, and posted on a global fan community platform like WEVERSE. “
âIt looks like it won’t be long before we can use digital photo cards within the platform to create a virtual space with our avatars, and fans can show such space to others and artists.
“In order to make this a reality, we will bring together the capabilities the two companies have developed so far to introduce exciting new innovation to the global music and fintech industries.”Music trade around the world