Bithumb Splits Exchange and Investment Units as It Prepares for Kosdaq Listing
- Bithumb posted a $95M profit in 2024, reversing a $149M loss from the previous year.
- Bithumb A will manage investments as the exchange unit prepares for a Kosdaq listing.
- The company saw revenue reach 496.3B won with a 265% increase year over year.
South Koreas biggest cryptocurrency exchange, Bithumb, is seeking a major corporate restructuring ahead of its planned initial public offering (IPO) in 2025. The company wants to optimize its operations to leverage a long-term position in the highly competitive cryptocurrency market.
Reorganization and Formation of Bithumb A
As part of its restructuring, the company will form two entities: Bithumb Korea and Bithumb A. It plans to keep operating the cryptocurrency exchange under Bithumb Korea, which will list on South Koreas Kosdaq in the second half of 2025.
The second entity, Bithumb A, will oversee the exchanges non-core activities. Bithumb A will manage the companys venture investments, asset management activities, and new business, including its Partners, which will shift from NFT and metaverse projects to more traditional financial products like equities, bonds, and convertible bonds. According to reports, the company is in talks with licensed entities in South Korea to roll out these services. The split is due to take effect by July 31, 2025.
Financial Health and Growth Prospects
Bithumbs restructuring comes on the heels of strong financial performance. In 2024, the exchange reported another major turnaround after posting an operating profit of 13.08 trillion won ($9,490 million), reversing an operating loss of 14.9 trillion won in 2023. This recovery has been attributed to improved trading infrastructure, a wider crypto market recovery, and increased user activity. The rise of the companys revenue was the largest year-over-year increase in the quarter, reaching 265.4%.
The exchanges financial strength has shown resilience despite facing legal challenges such as an investigation into its former CEOs misuse of funds. The company has invested in compliance and product development to enable it to be successful in the long run.
Bithumb has separated its exchange operations from other parts of its business structure to create better transparency and governance before its planned IPO. By segregating its exchange business units from other company activities, the exchange aims to lower risk exposure and enhance investment clarity. The restructuring aligns with a broader trend in the crypto industry, where companies are refining their operations and governance frameworks as they prepare for public offerings.
The company aims to establish itself as a global crypto exchange player through a dual listing process, beginning with the Kosdaq exchange and with the option for a future Nasdaq listing. The company will improve its internal framework and compliance systems to attract institutional investors in the shifting regulatory framework.
Read more: https://www.tronweekly.com/bithumb-split-unit-preparing-for-kosdaq-listing/
Text source: TronWeekly
