It moves from a weak position. Shares closed near 16 cents on June 29, and Nasdaq has warned the company twice this year that it no longer meets listing rules, in January for trading below $1 and again in June because its publicly held shares are worth less than the minimum $15 million.
K Wave is considering a reverse stock split, which combines shares at fewer, higher prices to raise the listed price. The $250 million it hopes to raise is many times the entire market cap.
The pullback fits a pattern followed by bitcoin miners.
These firms have sold more than 15,000 bitcoin from peak holdings and signed over $70 billion in AI computing contracts, chasing more stable margins than mining offerings, and financial firms are now joining this rotation. And it worked for some of the struggling miners as their stock rose from their lows. For example, IREN, a former bitcoin mining company that switched to AI, saw its shares rise more than 200% after languishing since 2022.
It’s the same shift of money out of crypto and into the AI trade that has weighed down bitcoin through a losing first half.
Whether the switch works has not yet been proven. AI infrastructure is capital-heavy and crowded with better-funded rivals, and K Wave needs to stay on the Nasdaq long enough to spend what it collects.
