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Local cryptocurrency exchange Bithumb Korea announced on Friday that the company will spin off its holdings into a separate entity to boost growth and accelerate its expected stock market debut next year.
Bithumb Korea plans to spin off its holdings under a new name, tentatively Bithumb Investment, the company said in a regulatory filing. The newly launched division will take over Bithumb Korea’s equity, investment and real estate rental businesses.
Bithumb Korea, an existing division, will be responsible for operating Bithumb’s virtual currency exchange. The company explained that it will focus on providing more transparent and stable services to exchanges.
The shares will be split 60:40 between Bithumb Korea and Bithumb Investment. The spin-off is expected to be approved at the general meeting of shareholders scheduled for May 10th, and is expected to be completed by June 13th.
Last year, Bithumb Korea announced that it would go public in the second half of 2025. The company explained that the separation will allow Bithumb Korea to be evaluated solely on its exchange business, facilitating its initial public offering. Approximately 90% of Bithumb Korea’s revenue comes from fees from its exchange business.
Bithumb Korea officials said, “The spin-off will promote efficiency in each division. “The aim is to increase new opportunities.” ”
For the past few months, Bithumb Korea has been aiming to become the first crypto exchange operator to go public in South Korea. The company is mainly considering listing on South Korea’s second high-tech stock exchange, KOSDAQ, and in November selected local securities company Samsung Securities as the lead underwriter.
The exchange operator is making a bold move to increase its share of the local market, which is currently dominated by Upbit, the largest crypto exchange here. Upbit has more than 80 percent of the market share, and Bithumb owns about 15 percent.
Meanwhile, Dunam, which operates Upbit, has not yet disclosed any formal plans for an IPO here. The company was considering listing on the New York Stock Exchange in 2021, but no progress was made. Despite the recent rise in Bitcoin prices, the company has stated that it is not considering an IPO.
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