[Alpha Biz=(Chicago) Reporter Kim Jisun] Dunamu, which runs the virtual asset exchange Upbit, will buy back its own shares this year.
According to the industry on the 20th, Dunamu will hold an extraordinary shareholders' meeting on the issue of the acquisition of its own shares (purchase of treasury shares) at Mirim Tower headquarters in Gangnam-gu on the morning of the 24th.
"The reason for the acquisition of treasury shares is aimed at enhancing shareholder value and performance compensation for executives and employees who contributed to the company's development," an official from Dunamu said. "We can know the purchase price only when it is approved at an extraordinary shareholders' meeting."
According to unlisted Securities Plus, the stock price of Dunamu remains at an all-time low of around 80,000 won. It fell more than half from 200,000 won a year ago and plunged more than 80% from a high of 540,000 won in November 2021.
As a result, the market capitalization also fell below 3 trillion won. About two years ago, Dunamu was valued at 580,000 won in stock prices in the process of mutual investment and equity exchange with Hive, with its market capitalization exceeding 20 trillion won at the time. The purchase of treasury stocks can be seen as a willingness to defend against falling stock prices and increase shareholder value.
Some analysts say that even if the business downturn and uncertain market conditions were pre-reflected, the stock price of Dunamu was relatively undervalued. In the first quarter of this year, Dunamu's net profit was 326.3 billion won, better than the same period last year (210 billion won). Virtual asset trading volume also surpassed Coinbase, the largest virtual asset exchange in the United States. Nevertheless, the market capitalization of the two trees is only one-eighth. Currently, the coinbase market capitalization listed on NASDAQ is about 24 trillion won.
Meanwhile, this year is the second time Dunamu has purchased its own shares. Last year, Dunamu bought 263,768 shares of its own stock outside the market for 334,000 won per share, totaling 88.176 billion won.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
