Bithumb Exchange Plans to Accelerate IPO Amid Crypto Bull Market
The South Korean exchange Bithumb is making moves to expedite its initial public offering (IPO) plans as the crypto bull market continues. According to reports from Hanguk Kyungjae, Bithumb is looking to “accelerate” its proposed listing on the KOSPI.
Bithumb Spinoff: Creating Bithumb Investment
Bithumb has announced that it will spin off its holdings operations into a separate company, tentatively named Bithumb Investment. The exchange published a regulatory filing document on March 22 outlining its plans for the spinoff.
The new company, Bithumb Investment, will be responsible for managing Bithumb’s holdings, investments, and real estate operations. On the other hand, the entity currently known as Bithumb Korea will focus solely on operating the crypto trading platform.
Share Distribution and Launch Date
Bithumb plans to divide shares in the new company using a 6:4 ratio. This proposal will be presented to shareholders at a meeting on May 10. If approved, Bithumb Investment will officially launch on June 13.
Shareholders will be informed that they will receive new shares in the new corporation in proportion to their existing shares.
Distancing from Ongoing Court Cases
Bithumb did not address any ongoing court cases in its filing. Instead, it appears that the exchange wants to distance itself from these legal matters and ensure that the success or failure of the IPO is based solely on its core exchange business.
Potential Advancement of Listing Plans
Bithumb has faced challenges in recent times, including intense competition from Upbit, its main rival. In an effort to regain market share, Bithumb has offered commission-free trading and seen increased trading volumes.
South Korea is known for its enthusiasm for cryptocurrencies, but there are only a few platforms in the country that have licenses for fiat-crypto trading. Bithumb hopes that by spinning off its holdings operations, it will increase the likelihood of a successful IPO by creating a company focused solely on the exchange business.
A spokesperson for Bithumb stated that this move would promote efficiency and boost the growth of exchange operations through separate ownership models.
Bithumb previously stated that it plans to debut on the KOSPI in 2025. However, with the new spinoff plans, the exchange may be able to accelerate its listing and become the first South Korean trading platform to go public.
Other IPOs in the Crypto Industry
Upbit’s operator, Dunamu, is considered too large to debut on the KOSPI. Talks of a Coinbase-inspired IPO also fizzled out during the 2022 bear market.
However, another Upbit-related firm, K Bank, is also planning its own IPO bid. K Bank provides banking services to Upbit customers and could potentially launch on the KOSPI in the near future.
Hot Take: Bithumb’s IPO Ambitions Amidst Crypto Market Boom
Bithumb’s decision to accelerate its IPO plans reflects the bullish sentiment in the crypto market. As cryptocurrencies continue to gain mainstream acceptance and interest from investors, exchanges like Bithumb are looking to capitalize on this trend.
The spinoff of Bithumb’s holdings operations into a separate company demonstrates a strategic move to streamline operations and focus on core exchange business. By creating an entity solely dedicated to the exchange business, Bithumb aims to increase its chances of a successful IPO.
While Bithumb faces competition from Upbit and legal challenges, the exchange remains optimistic about its listing prospects. With the potential advancement of its listing plans, Bithumb could become the first South Korean trading platform to go public, solidifying its position in the market.
As the crypto industry continues to evolve and mature, we can expect more exchanges and related businesses to explore IPO opportunities. The success of Bithumb’s IPO could pave the way for other crypto companies to follow suit and further integrate cryptocurrencies into traditional financial systems.
Sources: Hanguk Kyungjae
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