Justin Bieber was bitten… Hive 80 billion picky ants

hive(150,000 +1.01%)has evaporated more than 3 trillion won in market capitalization in a week. Idol group BTS announced their intention to temporarily suspend group activities. World-famous pop stars Justin Bieber and Ariana Grande also suffered losses in the crash, but individual investors are not relenting in their stock buying trend. Waiting for a rebound, they are ‘watering’ (buying the bottom) or buying at a low price.

According to the Korea Exchange on the 20th, Hive is trading at 149,000 won as of 11:15 am. Its market capitalization stood at 6.16 trillion won. The market cap also decreased by 3.8 trillion won, down 33.3% from the closing price on the 10th (223,500 won).

Hive’s stock price plummeted as soon as BTS announced in a YouTube video that they would suspend group activities. On the 14th, BTS announced the temporary suspension of group activities, saying, “Even if we stop for a moment, relax, and rest, we are moving forward for more time in the future.” .

When Hive was listed in 2020, BTS accounted for 87.7% of total sales. Although the proportion of sales has not been separately calculated after listing, it is estimated that Hive’s dependence on BTS is still significant.

BTS goods displayed at a store in Myeong-dong, Seoul. /Photo = Yonhap News

Hive hastily issued an explanation that the group activities and individual activity schedules are in parallel, but it was not enough to prevent the share price from falling. At the same time, the issue of military enlistment surrounding BTS is also resurfacing. As the time for the members to fulfill their military service obligations approaches, there is concern that the deterioration of Hive’s performance will become a reality.

Justin Bieber and Ariana Grande also lost money in the crash. They were listed as shareholders in the process of Hive’s acquisition of Ithaca Holdings, an American general media company, last year.

Ithaca artists Justin Bieber and Ariana Grande participated in a third-party allocated capital increase (new stock issue price of 21,608 won) and secured 53,557 shares each. It was found that they invested a total of 225 billion won.

The current stock price of Hive is 149,000 won, 61,608 won lower than at the time of the rights offering. Therefore, it is estimated that Justin Bieber and Ariana Grande each suffered a valuation loss of 29.2%. In addition, they have a one-year protection deposit, so they cannot sell Hive shares right away.

Hive office building in Yongsan-gu, Seoul. /Photo = Yonhap News

Bad news continues, but individuals are sweeping Hive stocks. Last week, individuals net bought Hive stocks except on the 13th and 17th. During this period, individuals bought 82.7 billion won worth of stocks. On the other hand, foreigners and institutions sold 24.2 billion won and 67.7 billion won worth of stocks, respectively.

Securities companies are all lowering the target price of Hive. Hyundai Motor Securities lowered its target price by 28.7% from 400,000 won to 285,000 won. In addition, eBest Investment & Securities (down 35.8%), NH Investment & Securities (29.5%), and Hana Financial Investment (16.2%) lowered their target prices.

Kim Hyun-yong, a researcher at Hyundai Motor Securities, explained, “This reflects the fact that the tour in the second half of the year has become practically difficult as the end of BTS’ activities as a whole is earlier than expected.”

Ryu Eun-hyuk, staff reporter at Hankyung.com ehryu@hankyung.com