Local crypto exchange Bithumb Korea on Friday announced that the company will spin off its holdings business in a move to increase growth and accelerate its stock market debut planned for next year.
Bithumb Korea will separate its holdings business under a new name, tentatively coined Bithumb Investment, the company said through a regulatory filing. The newly launched unit will take over the holdings, investments and real estate leasing business of Bithumb Korea.
The existing unit Bithumb Korea will be in charge of operating Bithumb’s crypto exchange. It will focus on providing a more transparent and stable service for the exchange, the company explained.
The shares will be divided in a 60:40 ratio between Bithumb Korea and Bithumb Investment. The spin-off will be approved through a shareholders’ meeting slated for May 10 under an outlook to be completed by June 13.
Last year, Bithumb Korea said it would go public in the second half of 2025. The separation will enable Bithumb Korea to be evaluated only with its exchange business, pushing the initial public offering drive, the company explained. Commissions from its exchange business take up some 90 percent of Bithumb Korea’s sales.
“The spin-off will promote the efficiency of each unit,” an official from Bithumb Korea said. “The separation is to increase the growth of Bithumb Korea’s core exchange operation and new opportunities by encouraging independence and flexibility of each business through separate ownership.”
Over the past few months, Bithumb Korea has been pushing to become the first cryptocurrency exchange operator to go public in Korea. Primarily considering a listing on Korea’s secondary tech-laden bourse Kosdaq, it selected local brokerage Samsung Securities as its lead underwriter in November.
The exchange operator has been making bold moves to increase its share in the local market currently dominated by Upbit, the largest crypto exchange here. Upbit takes up more than 80 percent of the market share, while Bithumb owns some 15 percent.
Meanwhile, Dunamu, the operator of Upbit, has not yet revealed an official plan for an IPO here. In 2021, it had considered making a listing on the New York Stock Exchange but failed to make progress. Despite the latest bitcoin rally, the company has been putting forward a stance that it does not consider an IPO.
