Bithumb is restructuring its investment arm by creating Bithumb A ahead of a potential Nasdaq IPO. Shareholder approval is set for June 12, 2023. The exchange reported a significant financial recovery in 2024, despite ongoing legal issues concerning previous executives.
Bithumb, a prominent South Korean cryptocurrency exchange, is restructuring its business by spinning off its investment and holding units in preparation for an initial public offering (IPO). This corporate separation, to take effect on July 31, will establish a new entity named Bithumb A, which will incorporate Bithumb Holdings and Bithumb Investment, thereby enhancing risk management and focusing business strategies. The operational arm, Bithumb Korea, will continue under its existing structure.
The decision to spin off is aligned with Bithumb’s ambitions of listing on international stock exchanges, specifically considering a potential Nasdaq listing, as outlined in its regulatory filings. Shareholder approval for this new corporate structure is set for discussion in a meeting on June 12. Bithumb A will manage several domestic and international subsidiaries within its operational framework.
Bithumb’s recent financial statements reflect a recovery in financial performance, with an operating profit of 130.7 billion won (approximately $90.1 million) for 2024, a substantial improvement from a 14.8 billion won loss in 2023. Year-on-year revenue increased by 265.4%, reaching 496.3 billion won, attributed to the cryptocurrency market rebound.
Despite these gains, Bithumb faces legal challenges linked to its former leadership. In March, South Korean prosecutors conducted a raid at Bithumb’s headquarters due to allegations surrounding misuse of company funds by its former CEO, involving unauthorised property purchases.
