What Happened? DeepMind Platform Announces Convertible Bond Exercise

On August 4, 2025, DeepMind Platform announced the exercise of its 8th convertible bond. This will result in 1,308,044 shares being listed on August 22nd, representing 5.42% of the current market capitalization.

Why Does it Matter? The Two Sides of Dilution and Funding

This convertible bond exercise could lead to the dilution of existing shareholders’ equity and a decrease in earnings per share (EPS) due to the increased number of shares. The conversion price (1,529 KRW) being lower than the current stock price (3,850 KRW) could also exert downward pressure on the stock in the short term. However, it simultaneously allows the company to raise capital for investment in new businesses like drones and F&B, as well as strengthen its existing businesses, potentially fueling long-term growth.

What’s the Outlook? Short-Term Decline vs. Long-Term Growth Potential

  • Short-term impact: Potential stock price decline
  • Long-term impact: Potential stock price increase if new ventures succeed

Currently, DeepMind Platform faces financial challenges such as declining sales, continuous losses, and a high debt-to-equity ratio. However, the funds secured through the convertible bonds can contribute to improving financial stability and securing liquidity. Successful investments can drive long-term corporate growth, but the success of these investments remains uncertain.

What Should Investors Do? Careful Analysis and a Long-Term Perspective are Key

Investment decisions should be made cautiously, considering DeepMind Platform’s new business plans, efforts to improve financial stability, and the macroeconomic environment. This is suitable for investors with a high-risk tolerance, and maintaining a long-term investment perspective is crucial. Minimize investment risks through continuous monitoring and gathering additional information.