Dunamu Sets Up U.S. Investment Unit, Says Move Is Unrelated to Nasdaq Listing
Summary
- Dunamu said it has established a local unit, Dunamu USA, to seek new business lines and investment opportunities in the U.S. market.
- Dunamu USA will handle equity investments in U.S. companies and management of held assets, in what the company described as a move to diversify its fee-driven revenue structure.
- Some have linked the launch of Dunamu USA to the possibility of a future Nasdaq listing, but Dunamu said the establishment of the U.S. unit and a Nasdaq listing are unrelated.
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Dunamu, the operator of Upbit, has set up a U.S. unit to pursue new business and investment opportunities in the American market. Some in the market have linked the move to a potential U.S. stock listing, but the company said it is aimed at business diversification.
Yonhap Infomax reported on October 20 that Dunamu recently established Dunamu USA Inc. The entity will oversee equity investments in U.S. companies and the management of held assets. It will operate as a subsidiary of Dunamu Central, a newly created company set up for domestic and overseas investment and management.
Baek Dong-ho, Dunamu's head of finance, will lead Dunamu USA. Baek also serves as chief executive of Dunamu Central and was appointed on an interim basis to build the initial operating structure for both entities, the report said. Dunamu Central was established with capital of 500 million won, or about $361,000.
The new unit underscores a strategy to expand Dunamu's investment business separately from its existing overseas operations. The company has invested in startups through Dunamu & Partners and pushed overseas business through Dunamu Global. With Dunamu Global focused on operations related to Levels, its joint venture with Hybe, Dunamu set up a separate organization to source and manage new investment opportunities.
The move also points to an effort to diversify a revenue structure centered on exchange fees. Dunamu posted first-half revenue of 408.1 billion won, or about $295 million, and operating profit of 111.5 billion won, or about $80.6 million, down 49% and 80%, respectively, from a year earlier. With earnings highly sensitive to conditions in the digital-asset market, securing mid- to long-term growth drivers has become more important.
Some market participants have tied the creation of Dunamu USA to the possibility of a future Nasdaq listing. As Dunamu pursues a comprehensive share swap with Naver Financial while also establishing a U.S. unit, some see the move as early preparation for an overseas initial public offering. One scenario being discussed would have existing shareholders contribute their stakes in kind to the U.S. entity before listing that company.
Dunamu, however, said the establishment of the U.S. unit is unrelated to a Nasdaq listing. The listing plan currently under discussion is centered on Naver Financial. The share-swap agreement between the two companies includes a provision to form an IPO committee within one year after the transaction closes and to work toward listing Naver Financial within five years.
