Bithumb, a South Korean exchange, is looking to accelerate its IPO plans as the crypto bull market continues. The exchange is planning to spin off its holdings operations into a separate company named Bithumb Investment, while the current entity known as Bithumb Korea will focus on operating the crypto trading platform. The company plans to divide shares in Bithumb using a 6:4 ratio and will put the plan before a meeting of shareholders on May 10. If approved, Bithumb Investment will officially launch on June 13. The firm aims to distance itself from ongoing court cases and focus on the success of its core exchange business for the IPO.
Foreign investors have been extending their buying streak in KOSPI stocks, acquiring a net purchase of 14.401 trillion won so far this year, exceeding last year’s total net purchases of 11.424 trillion won. Meanwhile, Bithumb has seen a surge in business, offering commission-free trading to compete with its biggest rival, Upbit. The exchange hopes that the spinoff will increase the possibility of an IPO launch by creating an entity focused on the exchange business. The move is intended to promote efficiency, boost growth, and pursue new businesses outside core exchange operations without being restricted by the Bithumb IPO bid. The exchange is eyeing a 2025 KOSPI debut and could potentially fast-track its listing.
Upbit’s operator Dunamu is considered too large to debut on the KOSPI, but another Upbit-related company, neobank K Bank, is looking to launch its own IPO bid. K Bank provides banking services to Upbit customers and has seen rapid growth as a result of its crypto operations. The partnership between K Bank and Upbit has led to an exponential growth in the user base of the bank. This growth could potentially lead to K Bank launching on the KOSPI in the near future. Bithumb and K Bank are among the South Korean companies looking to capitalize on the growing interest in cryptocurrencies and blockchain technology by moving forward with IPO plans.
The media outlet reported that Bithumb announced the spinoff of its holdings operations into a separate company named Bithumb Investment, with the current entity focusing on operating the crypto trading platform. The new company will take control of Bithumb’s holdings, investments, and real estate operations. Shareholders will receive new shares in the new corporation in proportion to their existing shares. Bithumb aims to create an entity centered on the exchange business that will increase the possibility of an IPO launch. The move is expected to promote efficiency, boost growth, and pursue new businesses without being restricted by the Bithumb IPO bid.
Bithumb has been experiencing a boom in business in recent months, offering commission-free trading and seeing a retail Bitcoin trading renaissance in South Korea. The exchange hopes that the spinoff will help to further increase the possibility of an IPO launch by creating an entity focused on the exchange business. Bithumb’s move to separate its holdings operations and focus on its core exchange operations is seen as a strategic decision to position the company for a successful IPO bid. The exchange is likely to become the first South Korean trading platform to go public, given its current plans and the growing interest in cryptocurrencies in the region.
