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Bithumb to Spin Off Non-Exchange Division Ahead of IPO Plans
Bithumb, one of South Korea’s leading cryptocurrency exchanges, is making bold moves to streamline its operations as it prepares for a potential initial public offering (IPO) later this year.
In a statement released via the country’s official disclosure system, DART, Bithumb confirmed it will move forward with the spin-off of its non-exchange business unit — an initiative that had previously been postponed. The spin-off is scheduled for July 31, 2025, and the newly formed entity has been temporarily named Bithumb A, though its official English title is yet to be revealed.
Strengthening Business Divisions
Bithumb clarified that the spin-off is in line with a larger plan to demerge its core exchange business from its other businesses for the purposes of improved risk management and operational clarity. By having independent accountability over each division, the company intends to ensure that problems from its non-exchange segments do not have any adverse effects on its exchange platform’s performance or stability.
“By having independent accountability in each business division, the spin-off essentially insulates the risks arising from the non-exchange businesses from getting transferred to the exchange business,” the company pointed out in its official statement.
The reorganization is also aimed at enhancing business efficiency, refining expertise, and enhancing competitiveness in all areas of the business.
The share division between the two parties after the spin-off is likely to be in a 56:44 ratio in favor of the initial Bithumb company.
Surging Profits Amid Market Bull Run
Bithumb’s restructuring strategy follows a very lucrative year. With the help of a bullish second half of 2024 in the crypto market, the exchange earned a net income of $110 million, a whopping 560% surge year on year.
While its major competitor, Upbit, maintains market dominance, recording approximately $671 million in net income in the same timeframe.
IPO Ambitions in Full Swing
The spin-off is in line with Bithumb’s overall objective of listing for an IPO on the domestic stock market during the second half of 2025. Samsung Securities has been appointed as the offering’s underwriter.
There have also been whispers that Bithumb is investigating a potential Nasdaq listing, though the company has not made any further announcements on that front to date.
With the crypto world maturing and developing further, Bithumb’s restructuring shows an evident desire to establish itself as a global contender in the digital asset sector with a high degree of governance, specialization, and long-term growth.
Tune in for further news on Bithumb’s IPO process and what this implies for the future of crypto exchanges in South Korea and the world at large.
