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- Bithumb will split its business operations by July 31, 2025.
- The move is aimed at improving efficiency ahead of an IPO.
- It could list on either the Korean market or Nasdaq later this year.
South Korea’s crypto exchange Bithumb has set a date for its long-awaited corporate restructuring. The company will divide its operations on July 31, 2025. This plan includes creating a new entity named “Bithumb A,” which will take over all non-exchange-related businesses.
The idea is straightforward: concentrate and minimize risk. By dividing the non-exchange-related components of business, Bithumb aims to insulate its core operations. This should also make it more efficient. The company is confident that every branch will function more optimally when it is able to conduct its operations on its own.
The spinoff is part of an even larger plan. Bithumb is planning to go public. It is targeting to make an initial public offering (IPO) in the latter half of 2025. Samsung Securities will handle that. A domestic listing is one possibility, but it is also eyeing Nasdaq in the U.S.
Bithumb Split Set to Strengthen Strategy
Bithumb maintains that the spin-off will solidify its business segments. By assigning every part of the company a specific role, the company is able to manage growth and planning better. The new Bithumb A will own 44%, while approximately 56% will remain in the exchange.
This is not an overnight change. Bithumb had previously planned to split but waited. Now that markets have picked up strength and earnings have been on an increase, the company feels that this is the best time to act.
Bithumb A will most likely manage areas like blockchain development, consulting, or digital asset management, tasks that don’t directly have to do with trading. Segregating these from one another can prevent the company from experiencing problems that can cross over to its exchange operations.
Bithumb Eyes IPO After Massive Profit Growth
In 2024, there was a dramatic increase in profits by Bithumb. Bithumb posted net income to the tune of $110 million, representing a 560% increase from the second preceding year. This was after the cryptocurrency market recovered in vigor in second-half operations.
Even with this increase, Bithumb remains behind Upbit, South Korea’s leading exchange. Upbit generated $671 million in profits in the same period. Nevertheless, Bithumb’s expansion has attracted notice and lent credibility to plans for an initial public offering.
The split-up and the initial public offering combined have the potential to redefine the future of the company. With streamlined business lines and increased profits, Bithumb is establishing itself as a more formidable contender in domestic as well as international markets. The coming months will reveal whether these ambitious strategies translate to sustained success.
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