Bithumb Korea Splits Off Units for Impending IPO

In a strategic move, Bithumb Korea, the operator of South Korea's leading crypto exchange, Bithumb, has announced plans to spin off its business, establishing a new corporation named Bithumb Investment. This separation aims to enhance the efficiency and expertise of each business sector and streamline operations for a more transparent and stable user experience. Notably, the spin-off aligns with Bithumb's upcoming IPO plans, allowing the surviving corporation to focus on its core exchange business for evaluation.

Bithumb Korea to Spin Off Business Units in Preparation for IPO

South Korea's Bithumb Korea, operator of the leading cryptocurrency exchange Bithumb, has announced plans to spin off its business operations into a separate entity, Bithumb Investment. The move is seen as a strategic maneuver to enhance the feasibility of an impending initial public offering (IPO).

According to a report by Korean media outlet News 1, Bithumb Investment will oversee the company's holding, investment, and real estate rental divisions. Bithumb Korea will retain its core business operations, including the existing exchange.

The spin-off aims to enhance the expertise and efficiency of Bithumb's business sectors and improve management effectiveness through swift decision-making processes. By isolating its exchange business, the company seeks to streamline operations and provide more transparent and stable services to its users.

"It is to strengthen the expertise of the new corporation's business sector and improve management efficiency through prompt decision-making," said an official from Bithumb.

The separation is strategically aligned with Bithumb's IPO plans, scheduled for the second half of 2025. It positions the surviving corporation for evaluation primarily based on its exchange business. The split also allows Bithumb to pursue new ventures without constraints imposed by the IPO process, reflecting its commitment to innovation and growth.

The split ratio between Bithumb Korea and Bithumb Investment is approximately 6 to 4, and is scheduled to take effect on June 13. Shareholders will receive new shares proportionate to their holdings.

The proposed decision will be finalized at an extraordinary general meeting of shareholders on May 10. An official from Bithumb stated that the move would enhance management efficiency and foster independent operation within each business sector.

Bithumb Korea's spin-off reflects the growing trend of cryptocurrency exchanges seeking to enhance their operations and prepare for future growth. By separating its business units, Bithumb is positioning itself for success in the increasingly competitive cryptocurrency market and paving the way for a successful IPO.

Additional Considerations:

• Bithumb's decision to spin off its business units is a significant step in its preparation for an IPO.
• The split allows Bithumb to focus on its core exchange business while pursuing new ventures without constraints.
• The move is expected to enhance management efficiency and provide more transparent and stable services to users.
• The spin-off is scheduled to take effect on June 13, subject to shareholder approval.
• Bithumb's IPO plans are slated for the second half of 2025.