South Korea’s Bithumb Crypto Exchange Restructures Operations for IPO

Anticipating a stricter regulatory environment for digital assets in South Korea starting in 2025, cryptocurrency exchange Bithumb is undertaking significant operational changes as it prepares for a potential Initial Public Offering (IPO).

Strategic Restructuring

A key part of this preparation involves restructuring its business. Effective July 31st, Bithumb plans to divest its non-essential operations into a distinct entity tentatively named “Bithumb A”. Following this separation, the parent company will hold a 56% stake in the original exchange platform. This maneuver is designed to insulate the core trading business from peripheral risks and is seen as a way to bolster long-term growth prospects ahead of going public.

IPO Ambitions and Timeline

Bithumb is targeting the second half of 2025 for its IPO, with Samsung Securities secured as the underwriter. While a domestic listing in South Korea is expected, the company is also evaluating the possibility of listing on the Nasdaq as part of a strategy for broader global expansion.

Financial Performance and Regulatory Context

Despite facing ongoing regulatory challenges, including temporary service suspensions related to Know Your Customer (KYC) protocols and restrictions stemming from associations with overseas platforms, Bithumb reported substantial financial gains. In 2024, the exchange achieved a net profit of approximately $110 million, marking a significant 560% increase compared to the previous year, though it still trails its main domestic competitor, Upbit. The current restructuring is viewed as a strategic effort to navigate compliance complexities and enhance investor confidence as it moves towards its IPO goals.