One of South Korea’s largest digital assets exchanges, Bithumb, is reportedly making significant strides toward an initial public offering (IPO) slated for the second half of 2025.
In a strategic move to streamline operations and potentially enhance its valuation prospects, the exchange announced plans to spin off its non-exchange division into a separate entity.
As widely reported, this restructuring aims to sharpen Bithumb’s focus on its core cryptocurrency trading platform while positioning the company for a potential listing on the U.S. Nasdaq or South Korea’s local exchanges.
The decision to separate its non-exchange businesses—tentatively named “Bithumb A” or “Bithumb Investment”—reflects Bithumb’s intent to create a leaner, more transparent corporate structure.
The new entity will manage the company’s investments, real estate leasing, and other non-core activities, while Bithumb Korea, recently rebranded to simply “Bithumb,” will concentrate exclusively on operating its cryptocurrency exchange.
This restructuring follows a 60:40 share split approved in March 2024, with Bithumb retaining 60% ownership of the new investment arm.
The spin-off, expected to be finalized by July 31, 2025, is seen as a critical step to boost the exchange’s appeal to investors by emphasizing its primary revenue driver: trading fees, which are said to account for approximately 90% of its income.
It’s worthwhile to note that Bithumb’s IPO plans are not new.
The exchange initially explored a Kosdaq listing in 2020 but shelved the plan due to regulatory uncertainties and concerns over its governance structure.
Since then, Bithumb has faced considerable challenges, including legal controversies involving former chairman Lee Jeong-hoon, who was acquitted of fraud charges in 2025, clearing a significant hurdle for the IPO.
Additionally, the exchange has navigated a competitive domestic market dominated by Upbit, which reportedly commands more than 80% of South Korea’s crypto trading volume.
Bithumb, with a 15-20% market share, is leveraging the IPO to regain investor trust and close the gap with its primary competitor.
The move to target a Nasdaq listing, with Samsung Securities as the lead underwriter, underscores Bithumb’s global expansion strategy.
A U.S. listing could provide access to a broader investor base and enhance brand visibility, especially as South Korea’s regulatory environment remains stringent for crypto-related financial products.
However, challenges persist, including an ongoing anti-money laundering investigation by South Korea’s Financial Intelligence Unit, which could impact the IPO timeline.
Questions / uncertainty about Bithumb’s ownership structure, particularly the involvement of businessman Kang Jong-hyun, also linger as potential concerns for investors.
Despite these hurdles, Bithumb’s strategic restructuring plan has sparked optimism.
Posts on social media highlight a significant 560% profit surge, signaling financial strength, though some note a 2023 revenue slump and legal uncertainty as potential risks.
By spinning off its non-core businesses, Bithumb aims to present a focused, efficient operation to investors, potentially setting a precedent for other Asian exchanges looking to expand operations globally.