Bithumb Korea Plans Spin-off to Enhance IPO Feasibility
In an exciting development for the cryptocurrency community, Bithumb Korea, the operator of South Korea’s leading crypto exchange Bithumb, has announced its plans to spin off its business. The move is seen as a strategic maneuver aimed at improving the feasibility of an upcoming initial public offering (IPO).
Bithumb Announces Spin-off and Creation of Bithumb Investment
Bithumb Korea has revealed its intention to pursue a spin-off by establishing a new corporation called Bithumb Investment. This new entity will oversee the holding, investment, and real estate rental divisions of Bithumb Korea, as reported by News 1.
On the other hand, Bithumb Korea will retain its core business operations and focus primarily on the existing exchange.
Enhancing Expertise and Efficiency
The division of Bithumb’s business aims to strengthen the expertise and efficiency of its different sectors. By isolating its exchange business, the company seeks to streamline operations and provide more transparent and stable services to its users.
An official from the crypto exchange stated that this move is intended to improve management efficiency through prompt decision-making.
Focus on Upcoming IPO
The separation aligns with Bithumb’s plans for an IPO in the second half of 2025. By positioning the surviving corporation primarily based on its exchange business, it can undergo evaluation for the IPO process. The split also allows Bithumb to pursue new ventures without constraints imposed by the IPO process, showcasing their commitment to innovation and growth.
Split Ratio and Shareholder Benefits
The split ratio between Bithumb Korea and the new corporation is set at approximately 6 to 4, with shareholders receiving new shares proportionate to their holdings. However, the final decision will be made at an extraordinary general meeting of shareholders on May 10.
The proposed spin-off is expected to enhance Bithumb’s management efficiency and foster independent operation within each business sector.
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