South Korean Crypto Exchange Bithumb Revs Up IPO Plans Amidst Market Surge

Amidst the crypto market surge, South Korean cryptocurrency exchange Bithumb accelerates plans for an initial public offering (IPO) on the KOSPI exchange. To facilitate this, Bithumb plans to separate its holdings operations into a new entity, Bithumb Investment, streamlining its focus on exchange operations. This move aims to enhance the IPO's prospects and expedite the listing process, positioning Bithumb as a frontrunner in South Korea's crypto landscape.

South Korean Crypto Exchange Bithumb Accelerates IPO Plans Amidst Market Surge

By The Wall Street Journal

South Korea's leading cryptocurrency exchange, Bithumb, is accelerating its plans for an initial public offering (IPO) as the crypto market experiences a resurgence. According to reports in Hanguk Kyungjae, Bithumb is ramping up efforts to expedite its proposed listing on the Korea Composite Stock Price Index (KOSPI).

To facilitate this move, Bithumb intends to separate its holdings operations into a distinct entity, tentatively named Bithumb Investment. A regulatory filing on March 22 outlined the details of this plan, with the new firm assuming control over Bithumb's holdings, investments, and real estate. The current entity, Bithumb Korea, will continue to manage the crypto trading platform.

The proposed share division stands at a ratio of 6:4, subject to approval at a shareholder meeting scheduled for May 10. If approved, Bithumb Investment is set to commence operations on June 13. Shareholders are expected to receive new shares in proportion to their existing holdings.

Notably, the announcement steers clear of ongoing legal issues, including allegations of market manipulation linked to Bithumb's elusive owner. Instead, the focus remains on ensuring the IPO's success hinges on the exchange's core business.

In recent months, Bithumb has witnessed significant growth in its activities, with strategies such as commission-free trading aimed at reclaiming market share from rivals like Upbit. South Korea's enthusiastic embrace of cryptocurrency, coupled with a limited number of platforms offering fiat-crypto trading, has contributed to heightened trading volumes.

By spinning off its holdings operations, Bithumb aims to bolster the prospects of its IPO, emphasizing a streamlined focus on exchange operations. This move is anticipated to expedite the listing process, potentially advancing the previously targeted 2025 KOSPI debut.

In the South Korean crypto landscape, Bithumb's IPO bid positions it as a frontrunner, given the size constraints that impede Upbit's operator, Dunamu, from pursuing a similar path. While talk of a Dunamu listing on the New York Stock Exchange, inspired by Coinbase, has faded, another Upbit-affiliated entity, K Bank, is eyeing its own IPO bid. K Bank's partnership with Upbit has catalyzed substantial growth in its user base, paving the way for a potential listing on the KOSPI in the near future.