Bithumb crypto exchange to spin off non-exchange division amid IPO push

Bithumb, one of South Korea's major cryptocurrency exchanges, has relaunched efforts to spin off a new entity to compartmentalize and strengthen its business divisions, amid its goal of executing an initial public offering this year.

According to Bithumb's Monday statement on the country's official electronic disclosure system DART, the previously postponed spin-off is scheduled to take place on July 31, 2025. The spun-off entity is named Bithumb A, although its official English name has not been announced.

"By establishing independent accountability for each business division, the [spin-off] fundamentally prevents risks originating from non-exchange businesses from spreading to the exchange business," Bithumb said in the statement.

The exchange noted that the restructuring also aims to maximize corporate efficiency by enhancing the expertise and competitiveness of each business division.

The share distribution ratio in the spin-off between the existing Bithumb and the new entity would be roughly 56:44, according to the statement.

Along with the crypto market bull-run in the second half of 2024, Bithumb exchange posted $110 million in net profits during last year, witnessing a 560% jump year-over-year. Upbit, the country's largest crypto exchange, saw net profits of around $671 million last year.

The restructuring efforts align with the exchange's endeavors to launch its IPO in the second half of this year in the local stock market, with Samsung Securities as its underwriter, as previously reported.

Bithumb previously said it is also considering a potential listing on the Nasdaq. It did not immediately respond to The Block's request for further comment.