“South Korean cryptocurrency exchange Bithumb appears to be restructuring its investment and holding units as it plans to conduct a long-awaited initial public offering.
Crypto exchange Bithumb will separate its holding and investment business into a new company this summer as part of a larger plan to prepare for a potential Nasdaq listing, according to the exchange’s regulatory filing.
The corporate split, scheduled for July 31 according to a notice to shareholders, will create a new company called Bithumb A that includes Bithumb Holdings and Bithumb Investment. In the filing, Bithumb said the split will help manage risk and sharpen the business focus of each unit. Bithumb Korea, which operates the exchange, will remain under the current structure.
Shareholders will vote on the plan at a meeting on June 12, the filing reads. In the filing, Bithumb explained that it’s considering going public not only in Korea but also overseas, adding that it’s “reviewing” a potential listing on the Nasdaq, though it didn’t elaborate on the matter. The new entity, dubbed “Bithumb A,” will include several domestic and foreign subsidiaries.
The move follows Bithumb’s release of its 2024 financial results, which showed a positive dynamics from the previous year. The company posted an operating profit of 130.7 billion won (about $90.1 million), reversing an operating loss of 14.8 billion won in 2023. Revenue soared 265.4% year-over-year to 496.3 billion won. Bithumb attributed the surge to the crypto market’s recovery.
The solid results come despite legal issues involving Bithumb’s former leadership. In late March, South Korean prosecutors raided the exchange’s headquarters over allegations that the company’s funds were used by its ex-CEO to purchase an apartment.
