Bithumb Intensifies IPO Preparations as South Korean Cryptocurrency Exchange Pursues Public Offering

The South Korean exchange Bithumb is aiming to enhance its IPO strategy and may consider initiating a fast-tracked initial public offering as the cryptocurrency bull market persists.

According to Hanguk Kyungjae, Bithumb intends to “expedite” its planned KOSPI listing.

Bithumb IPO: Exchange Takes Definitive Actions

The news outlet reported that Bithumb has declared its intention to separate its holdings operations into an independent company, provisionally named Bithumb Investment.

The firm submitted a regulatory filing on March 22 outlining its intentions.

The new entity will manage Bithumb’s holdings, investments, and real estate activities.

In the meantime, the organization currently referred to as Bithumb Korea will concentrate on operating the cryptocurrency trading platform.

The company plans to allocate shares in Bithumb using a 6:4 distribution ratio. This proposal will be presented at a shareholders’ meeting scheduled for May 10.

If approved by shareholders, Bithumb Investment is set to officially launch on June 13, as reported by the media outlet.

Shareholders are expected to be informed that they will “receive new shares in the new corporation in proportion to their existing shares.”

The firm did not address ongoing legal issues, including an investigation into alleged market manipulation purportedly carried out by the enigmatic “real” owner of Bithumb.

Instead, it seems the firm aims to dissociate itself from such issues, focusing on the success of its core exchange operations for the IPO.

Foreign investors have continued their purchasing trend, achieving a net acquisition of 14.401 trillion won in #KOSPI #stocks this year, according to the #Korea Exchange. This amount significantly surpasses last year’s total net purchases of 11.424 trillion won.https://t.co/LiPQxxVfCW

— The Chosun Daily (@EnglishChosun) March 24, 2024

Could Bithumb Expedite its Listing Plans?

Bithumb-related activities have surged in recent months. The firm had recently been offering commission-free trading to regain market share from its primary competitor, Upbit.

A resurgence in retail Bitcoin (BTC) trading has also led to increased trading volumes in South Korea, a nation known for its enthusiasm for cryptocurrency. However, it has a limited number of platforms that possess fiat-crypto trading licenses.

Trading volumes on the Bithumb crypto exchange over the past 12 months. (Source: CoinGecko)

The exchange anticipates that the spinoff will “further enhance the likelihood of an IPO launch” by establishing an entity that is “focused on the exchange business,” as noted by the media outlet. It further stated:

“New ventures outside core exchange operations will be pursued swiftly through new corporations – without being constrained by the Bithumb IPO initiative.”

A Bithumb representative indicated that this move would “enhance efficiency.” The official also mentioned that it would “foster the growth” of “exchange operations” with “distinct ownership” structures.

Bithumb has previously indicated its goal of a 2025 KOSPI debut. This new strategy could potentially allow the exchange to expedite its listing.

Regardless of the timeline, the exchange is likely to succeed in its endeavor to become the first South Korean trading platform to go public.

South Korea’s Crypto-enthusiastic K Bank Aims for IPO Amid BTC Surge

K Bank, a South Korean neobank that has experienced rapid growth largely due to its crypto operations, is preparing to pursue an initial public offering (IPO) bid.#CryptoNews #newshttps://t.co/C0HqMWCHSL

— Cryptonews.com (@cryptonews) March 11, 2024

The operator of Upbit, Dunamu, is regarded as “too large” to debut on the KOSPI. Discussions regarding a Coinbase-inspired NYSE Dunamu listing diminished during the 2022 bear market.

Trading volumes on the Upbit crypto exchange over the past 12 months. (Source: CoinGecko)

However, another firm associated with Upbit is also preparing to initiate its own IPO bid, specifically the neobank K Bank.

K Bank offers fiat on/off ramp-style banking services to Upbit users. The collaboration has led to significant growth in K Bank’s user base over recent years and may also result in the bank pursuing a KOSPI listing in the near future.

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