S. Korea’s Bithumb to Restructure Business By July as IPO Plans Accelerate

Bithumb, one of the largest cryptocurrency exchanges in South Korea, is restructuring its business as efforts to launch an initial public offering (IPO) later this year intensify.

According to a filing at South Korea’s Data Analysis, Retrieval and Transfer System (DART), Bithumb will separate its exchange business by creating a new entity named “Bithumb A” to handle its non-exchange-related operations. Following several shareholder and board meetings, the restructuring is expected to be completed by July 31, 2025.

The crypto exchange’s existing entity will operate its exchange platform, while the new unit will handle the company’s holdings, investments, and real estate leasing business.

Bithumb to Spin Off Non-exchange Business

The restructuring aims to establish an independent responsibility and structure for each business decision, mitigating the risks that arise from linking the exchange to the non-exchange business. Bithumb aims to enhance operational efficiency and expand the expertise, competitiveness, and management of each business division.

“We aim to strengthen the stability and reliability of the company by clarifying the regulatory compliance responsibilities of each business division and focusing on strengthening internal control and risk management,” the crypto exchange said.

The protection of users’ crypto assets and the transparency and stability of customer deposit management remain priorities. Bithumb says it will secure an independent custody system and build a transparent financial structure to attain regulatory compliance.

“By blocking risks from non-exchange businesses and strictly protecting users’ assets, we secure market trust and establish regulatory compliance capabilities and an internal control/risk management system at the level of the financial sector,” the firm added.

Going Public in H2 2025

It is worth mentioning that Bithumb’s non-exchange spin-off was initially scheduled to be completed by mid-June 2024; however, it was postponed. The name of the surviving entity was to remain Bithumb Korea, while the new corporation would be named Bithumb Investment. The latest filing with DART shows that the exchange has decided to name the new corporation Bithumb A for now.

In addition, the share distribution ratio between the surviving entity and the new one was initially 60:40. However, recent developments have changed this to 56:44.

Bithumb’s announcement comes as the timeline for its IPO approaches. The crypto exchange has always planned to go public in the second half of 2025, listing on the local stock market and potentially on the Nasdaq. The company unveiled the local brokerage Samsung Securities as its lead underwriter for the IPO launch.