South Korean companies that adopted Bitcoin treasury strategies similar to Strategy's approach are encountering significant challenges. Bitmax, a former augmented reality firm that pivoted to Bitcoin, announced a 4-to-1 share consolidation on March 9 to address mounting losses. The company's stock fell over 10% the following day, trading near $0.63. Bitmax holds 551 BTC, mostly acquired through 13 OTC deals with its chairman, often at a premium, totaling approximately $55 million. The company's financial struggles are evident, with total debt surging from $4.4 million to $74 million in nine months, primarily due to convertible bonds for Bitcoin purchases. Bitmax reported a consolidated net loss of $52 million for the first three quarters of 2025. Despite efforts to stabilize revenue through enterprise IT services, the company's debt-to-capital ratio has risen sharply, raising concerns about its financial health. Bitmax is not alone; other KOSDAQ-listed firms like Parataxis Korea and Bitplanet have also faced stock declines after adopting similar strategies. These companies' experiences highlight the risks of leveraging Bitcoin purchases without the scale and market access enjoyed by larger firms like Strategy.