Upbit, operated by Dunamu Inc., has rapidly become a significant holder of Bitcoin through a systematic accumulation strategy. By the end of 2024, Dunamu held 16,839 BTC, valued at approximately $1.8 billion, making it the fourth-largest Bitcoin holder among publicly traded companies globally and the tenth when including private entities. This achievement was primarily fueled by transaction fees from its Bitcoin trading markets and withdrawal charges.
However, structural declines in Bitcoin trading volume—driven by its growing perception as a store of value—and intensified competition among exchanges are pressuring this accumulation model. This analysis explores Dunamu’s Bitcoin strategy, its revenue sources, and whether it can sustain its current growth trajectory.
The Rise of Bitcoin as an Asset Class
The approval of Bitcoin spot ETFs in the United States and anticipation of supportive regulatory policies have reinforced Bitcoin’s position as a legitimate alternative asset. Over the past 15 years, Bitcoin has evolved from a cryptographic experiment to a recognized financial asset. The next phase may involve broader adoption in digital finance, including stablecoins and cross-border payments, supported by distributed ledger technology.
Companies like Tether Limited exemplify this shift. In 2024, Tether announced it would allocate up to 15% of its net profits to Bitcoin purchases, highlighting its confidence in Bitcoin’s role in diversifying and strengthening reserve assets. Unlike one-time acquisitions, Dunamu’s strategy involves continuous Bitcoin accumulation through operational revenue—a rare approach globally.
Dunamu’s Bitcoin Reserves and Revenue Model
Dunamu’s Bitcoin holdings grew from 195 BTC at the end of 2019 to 16,839 BTC by December 2024. This growth was funded mainly through two income streams:
- BTC Market Trading Fees: Upbit operates KRW, BTC, and USDT markets. In the BTC market, it charges a 0.25% fee on both sides of each trade, collected in Bitcoin.
- BTC Withdrawal Fees: Users pay a fee (0.0008 BTC as of May 2025) when withdrawing Bitcoin, covering network costs and generating revenue.
A potential third source involves licensing Upbit’s technology to overseas exchanges, though this contributes minimally based on available data.
From an accounting perspective, Bitcoin acquired through these channels is recorded as intangible assets, directly linked to operational income. In 2023, 13.56% of Dunamu’s revenue was used to "purchase" Bitcoin; this figure was 4.62% in 2024.
Future Prospects for Bitcoin Accumulation
Two critical questions emerge regarding Dunamu’s future Bitcoin accumulation:
- What proportion of Bitcoin revenue comes from trading fees versus withdrawal fees?
- Can Dunamu maintain its current accumulation pace amid market changes?
Trading Fee Challenges
BTC market trading volume peaked in 2021 at over 1.5 million BTC but dropped sharply to 165,166 BTC in 2024 following the approval of spot Bitcoin ETFs. Annualized volume for 2025 is projected at just 25,362 BTC—a 96.4% decline from 2023. This suggests that as Bitcoin is increasingly viewed as a store of value, users are less inclined to use it for trading altcoins.
Withdrawal Fee Pressures
While withdrawal fees are highly profitable—with margins exceeding 99% in some cases—they are not scalable due to limited user withdrawal frequency. Furthermore, global exchanges like OKX and Binance charge significantly lower fees (as low as 0.00002 BTC), creating competitive pressure for Upbit to reduce its charges. Future fees may align more closely with network costs, impacting profitability.
Regulatory and Strategic Shifts
Recent regulatory developments in South Korea allow enterprises to hold and dispose of cryptocurrencies more freely. This could enable Dunamu to manage its Bitcoin reserves more flexibly, potentially selling portions if needed. The company’s strategy may shift from forced accumulation (due to regulatory constraints) to active management.
Frequently Asked Questions
How does Upbit earn Bitcoin?
Upbit accumulates Bitcoin primarily through trading fees on its BTC market and withdrawal fees charged to users. A small portion may come from international partnerships using its trading technology.
Can Dunamu sustain its Bitcoin acquisition rate?
It is unlikely. Trading volume on Upbit’s BTC market has dropped significantly since Bitcoin ETFs were approved, and withdrawal fees face competitive pressures. Dunamu may need to use cash reserves for future Bitcoin purchases if it wishes to continue accumulating.
Why is this important for investors?
Dunamu’s Bitcoin holdings represent substantial off-balance-sheet value. The company’s market capitalization may not fully reflect this asset, especially since Bitcoin revaluation increased its equity by $1.1 billion in 2024 without affecting net income.
How do withdrawal fees work?
When users withdraw Bitcoin, Upbit charges a fixed fee (0.0008 BTC currently). The actual network cost is much lower, making this a high-margin but low-frequency revenue source.
What is a Bitcoin maximalist?
A Bitcoin maximalist prioritizes Bitcoin over other cryptocurrencies. Dunamu’s strategy of retaining Bitcoin earned as revenue—instead of converting it to fiat—resembles this approach.
Are there risks to this strategy?
Yes. Bitcoin’s price volatility affects reserve value, and regulatory changes could impact revenue models. Additionally, declining trading activity may reduce future fee income.
Conclusion
Dunamu’s success in accumulating Bitcoin through operational revenue is notable, positioning it among the top global corporate holders. However, market trends and competitive pressures suggest that maintaining this pace will be challenging. The decline in BTC market trading volume and potential reductions in withdrawal fee profitability indicate that Dunamu may need to adapt its strategy.
Investors should consider the value of Dunamu’s Bitcoin reserves in their valuation models, as these assets are not fully reflected in traditional financial metrics. Moving forward, regulatory flexibility may allow the company to optimize its Bitcoin holdings more actively. 👉 Explore more strategies on digital asset management
This analysis is based on public data and is not financial advice. Always conduct your own research before making investment decisions.