K Wave Media Shares Drop After Convertible Note Agreement With Anson Funds

By Chris Wack

K Wave Media shares were 17% lower, at $4.56, after the company entered into a convertible note agreement with Anson Funds.

Under the agreement, Anson agreed to provide up to $500 million in financing under which KWM will allocate minimum 80% of the proceeds toward purchase of bitcoin.

The first tranche will be the issuance and sale of $15 million in senior secured convertible notes and warrants to Anson Investments Master Fund and Anson East Master Fund.

The agreement follows a $500 million Standby Equity Purchase Agreement with Bitcoin Strategic Reserve, bringing the company's total capital capacity for its treasury initiative to $1 billion.

K Wave has already completed its initial acquisition of 88 bitcoin.

Bitcoin was trading at $112,662 as of 12:32 p.m. ET, 3% higher in the last month.

Write to Chris Wack at chris.wack@wsj.com