[Edaily Reporter Kwon Oh-seok] IBK Investment & Securities assessed #ParataxisEthereum on the 19th, stating, “The company is maintaining stable earnings through its existing businesses while simultaneously pursuing a strategy of accumulating Ethereum as a reserve asset for long-term holding.” However, it did not provide an investment recommendation or a target price.

Yoo Chang-geun, an analyst at IBK Investment & Securities, noted, “The stable operating cash flow generated from the DB (database) security business helps reduce the burden of external financing and shareholder value dilution during the process of purchasing additional Ethereum,” adding, “However, the key risk lies in the volatility of asset value and stock price resulting from a decline in the price of Ethereum.”
Parataxis Ethereum originated from ShinSiWay, a traditional DB security solutions company, and is now pursuing a new Ethereum-centric DAT (Digital Asset Treasury) business. Following the acquisition of shares by Parataxis-affiliated investors, the company changed its name in January of this year and added DAT-related items to its business objectives.
First, the security solutions business continues to grow. First-quarter revenue stood at 2.70 billion won (up 35.9% year-over-year), while the operating loss was 310 million won (continuing losses). Analyst Yoo explained, “Due to the budget execution patterns of our major clients—public and financial institutions—revenue is concentrated in the fourth quarter, resulting in a loss in the first quarter due to the seasonal off-peak period.”
He added, “Nevertheless, demand for building data integration systems in the public and financial sectors, combined with the need to comply with personal information protection regulations, drove a 362.9% year-over-year increase in database encryption revenue. This was the key factor driving first-quarter revenue growth, and we expect both revenue growth and improved profitability this year.”
Regarding the DAT business, the company has continued to accumulate Ethereum since acquiring its stake and currently holds a total of 9,399 ETH. He added, “Based on company disclosures, we rank first in Asia and 13th globally among listed corporations in terms of ETH holdings,” noting, “Ethereum is being utilized as the foundational infrastructure for various financial services, such as stablecoins, the tokenization of real-world assets, and on-chain finance, and it is also possible to generate an additional 3–4% annual return through staking.”
However, he noted, “As of the first quarter of this year, more than 70% of our total assets are intangible assets. Due to the recent correction in virtual asset prices, valuation losses may be reflected in the second quarter, and short-term earnings volatility appears inevitable.”