- Bithumb has announced a corporate restructuring to separate its core exchange business from investment operations
- The new entity, Bithumb A, will manage venture investments and asset management, while Bithumb Korea will focus on the crypto exchange
- The split is scheduled for July 31, 2025, with a shareholder meeting to approve the plan set for June 13
South Korean cryptocurrency exchange Bithumb has initiated a strategic restructuring to streamline its operations ahead of a planned initial public offering (IPO). The company will divide into two entities: Bithumb Korea, which will continue to operate the crypto exchange, and Bithumb A, which will handle investment and asset management activities. This move is aimed at enhancing corporate efficiency and preparing for a potential listing on South Korea’s Kosdaq and possibly the U.S. Nasdaq.
Strategic Restructuring for IPO Readiness
Bithumb’s decision to split its operations is a strategic move to focus on its core competencies and prepare for a public listing. The newly formed Bithumb A will oversee the company’s venture investments, asset management, and new business initiatives, allowing Bithumb Korea to concentrate solely on its cryptocurrency exchange operations. This separation is expected to provide clarity to investors and regulators, potentially increasing the company’s valuation ahead of its IPO.
In 2024, Bithumb reported an operating profit of 130.8 billion won (approximately $95 million), a significant turnaround from a 149 billion-won loss the previous year. This financial improvement is attributed to the recovery of the cryptocurrency market and the company’s focus on its core exchange business. Despite this progress, Bithumb still trails behind its main competitor, Upbit, which holds a dominant market share in South Korea.
Legal Troubles Still Haunt Exchange
The restructuring comes amid ongoing legal challenges for Bithumb. In late March, South Korean prosecutors raided the company’s headquarters over allegations that funds were misused by its former CEO to purchase an apartment. These and other legal issues could impact the timeline and success of Bithumb’s IPO plans. However, the company appears committed to moving forward with its restructuring and listing efforts.
Bithumb’s strategic split and focus on its core exchange business position the company for potential growth and increased investor confidence. By separating its investment operations, Bithumb aims to present a more transparent and efficient corporate structure to the market. The upcoming shareholder meeting on June 13 will be a critical step in finalizing the restructuring plan, with the split set to take effect on July 31, 2025.
