In a move that has stirred anticipation within the cryptocurrency community, Bithumb Korea, the operator of one of South Korea’s leading crypto exchanges, Bithumb, has revealed plans to spin off its business. The decision, according to a report by a Korean media outlet, signifies a strategic maneuver aimed at enhancing the feasibility of an impending initial public offering (IPO).

Bithumb Announces Spin-off

Bithumb Korea, which operates the leading crypto exchange Bithumb, has unveiled its intention to pursue a spin-off, establishing a new corporation named Bithumb Investment. Notably, the new entity would oversee its holding, investment, and real estate rental divisions, according to a report by News 1.

On the other hand, the surviving entity, Bithumb Korea, will retain its core business operations, focusing primarily on the existing exchange, the report added.

Meanwhile, through this division, Bithumb aims to bolster the expertise and efficiency of its business sectors while enhancing management effectiveness through swift decision-making processes. In other words, by isolating its exchange business, the company seeks to streamline operations and provide more transparent and stable services to its users.

According to the report, an official from the crypto exchange said:

“It is to strengthen the expertise of the new corporation’s business sector and improve management efficiency through prompt decision-making.”

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Focus On The Upcoming IPO

The separation is strategically aligned with Bithumb’s IPO plans, slated for the second half of 2025, as it positions the surviving corporation for evaluation primarily based on its exchange business. In addition, the split allows the pursuit of new ventures without constraints imposed by the IPO process, reflecting the crypto exchange’s commitment to innovation and growth.

Meanwhile, the split ratio between Bithumb Korea and the new corporation, scheduled for June 13, stands at approximately 6 to 4. Notably, the shareholders will receive new shares proportionate to their holdings, the report showed.

However, it’s worth noting that the proposed decision will be finalized at an extraordinary general meeting of shareholders on May 10. According to an official, this move would aid Bithumb’s dedication to enhancing its management efficiency and fostering independent operation within each business sector.

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The post Just-In: Bithumb Korea Spin-off Crypto Exchange Business For IPO appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am