A Third-Party Share Deal Approved in South Korea
Dateline: August/September 2024
South Korean regulators have granted approval for a deal allowing Metaplanet CEO Simon Gerovich, alongside Sora Ventures and investment firm KCGI, to secure a significant stake in publicly traded systems integrator SGA Co.
Key Details
- The deal involves the issuance of over 58 million new shares to a consortium led by Sora Ventures (which Gerovich leads) and KCGI.
- This transaction, pending final filing after board approval, grants Asia Strategy Partners LLC—a fund supported by Sora Ventures and Gerovich—the status of largest shareholder in SGA Co.
- The objective cited in a regulatory filing translates to “rapidly securing funds necessary to attain the company’s operational goals and strategic objectives,” effectively raising approximately ₩34.5 billion ($25 million).
The Strategy
Though Gerovich is listed as an individual investor in the filing, the move aligns with a broader strategy by Metaplanet to influence treasury policies across Asia, mirroring its approach in Japan. Gerovich aims to put Bitcoin onto corporate balance sheets, describing it as “normalizing” the asset within regulated public markets.
This approach seeks to position Asia Strategy Partners and Sora Ventures as facilitators of disciplined treasury strategies involving Bitcoin, funded through controlled public offerings in nominally independent companies.
“Public companies in Asia are uniquely positioned to legitimize Bitcoin… Their role is to normalize adoption through disciplined treasury strategy,” stated Jason Fang, a partner at Sora Ventures.
The newly issued shares in SGA Co. are scheduled to begin trading on September 24. The funds will be allocated towards operational activities and new product development. While the SGA management team will retain their positions, decision-making authority will shift to the new investor base for one year post-transaction.
Consistent with their successful entry strategy in Japan through the fintech-focused Metaplanet, the group is adapting its model. Analysts view the successful regulatory execution in South Korea as a potentially significant step towards mainstreaming cryptocurrency treasury holdings, representing an institutional evolution for Gerovich’s company.
“This is a balance sheet upgrade,” maintains Fang. “We aim to lead this shift by working with credible institutions in jurisdictions where regulatory frameworks can appropriately support financial innovation.”
The approval underscores a coordinated push to embed Bitcoin into corporate treasury functions across Asia, leveraging Korea’s established financial structures to demonstrate legitimacy.
