BTS NFTs, record results and Dunamu share swap reported by HYBE
HYBE shares hit a record high Thursday on news it will issue non-fungible tokens (NFT) with Dunamu, operator of the Upbit cryptocurrency exchange.
The management company behind BTS also reported record quarterly earnings Thursday. It posted 49.5 billion won ($41.8 million) in net profit for the third quarter, up 81.86 percent on year. Its revenue increased by 79.49 percent on-year to 341 billion won in the third quarter, also a record high.
On Thursday, the agency’s shares closed at 356,500 won, up 2.89 percent and a record high. During trading, the share price soared to as high as 372,500 won.
While the agency’s earnings were boosted by the success of BTS’s “Butter” and selling merchandise related to major artists of the agency, the company’s venture into the NFT market is expected to become its new revenue stream.
NFTs are unique, irreplaceable digital objects that represent digital ownership of real-world assets such as artwork, music and video games that are offered in limited quantities. The token is backed by blockchain-technology to give buyers proof of ownership. NFTs can be traded on exchanges that support the trading of the digital token.
According to HYBE, photo cards of BTS members could be released as NFTs. Photo cards are commonly released in limited quantities and fans collect them. The physical photo cards are often traded by fans in person.
“HYBE and Dunamu plan to develop an NFT business under a new joint venture, which will allow the artist IP-based content and products that HYBE has showcased to date to become digital assets for fans,” said HYBE founder Bang Si-hyuk in an online briefing held Thursday. “We are working with Dunamu to create a way to expand the fan experience more diversely and securely such as digitally authenticating the uniqueness of these photo cards and making them permanent, but also allowing them to be collected, exchanged, and displayed in a global fan community platform like Weverse.”
HYBE said that the NFT-turned photo cards could be more than just a still picture. Videos and sound effects like voices of the actual members could be added to design a unique digital photo card for fans, it said.
According to HYBE, it is buying a 2.5 percent stake in Dunamu for 500 billion won. Separately, the company will issue 700 billion won of new shares, which Dunamu will purchase.
BY KIM JEE-HEE [firstname.lastname@example.org]