Naver’s potential acquisition of Dunamu comes as cryptocurrency has made a comeback from a series of corporate collapses in 2022.
SeongJoon Cho/Bloomberg
Naver saw its shares surge 11.4% on Thursday following a filing from the South Korean internet giant that it’s in talks for a share swap with Dunamu, the operator of Upbit, the country’s largest crypto exchange.
In the filing, Naver said its payment arm Naver Financial is in talks with Dunamu about a stock swap deal, as well as collaborations on stablecoins and trading of unlisted securities. The search engine giant said no specific details have been finalized and that it will issue additional disclosure in a month. Local newspaper Dong-A Ilbo first reported the news about the potential tie-up on Thursday.
Dunamu was cofounded by South Korean tycoon Song Chi-hyung in 2012 to run a crypto exchange and a trading platform for both listed and unlisted stocks. Its crypto exchange Upbit is South Korea’s largest of its kind, processing $2.9 billion in digital asset trades over a 24-hour period as of Thursday, according to tracker Coingecko.
Dunamu was valued at $17 billion in its most recent transaction in 2021, when Hybe, which manages K-pop powerhouse BTS, acquired a 2.5% stake for about $400 million. Other backers of Dunamu include Kakao Ventures, as well as local venture capital firm Woori Technology Investment and Hanwha Investment & Securities, the financial arm of conglomerate Hanwha Group.
Naver’s potential tie-up with Dunamu comes as cryptocurrency has made a comeback from a series of corporate collapses in 2022. Bitcoin, the world’s largest cryptocurrency, surged to a record-high of roughly $124,000 in August amid a rally fueled by U.S. President Donald Trump’s advocacy for a more friendly regulatory environment for digital assets. The cryptocurrency has since retreated some 10%.
Amid renewed interest in cryptocurrency, Naver last August unveiled its first digital asset wallet within Naver Pay. Launched in partnership with Malta-based blockchain company Chiliz, the wallet allows Naver Pay’s 33 million users to manage their digital assets, including NFTs, which are digital collectibles their advocates believe could be a valuable way of proving authenticity.
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