Bithumb revives spin-off plan ahead of IPO push

The price of Bitcoin is displayed at a Bithumb customer center in Seoul, March 10. Yonhap

Bithumb is resuming its spin-off plan as part of a two-track strategy aimed at strengthening its core exchange operations while expanding into new business areas, the company said Tuesday.

Korea’s second-largest cryptocurrency exchange said it submitted a securities registration statement Monday for the proposed spin-off, with the newly established entity scheduled to launch on July 31. This marks Bithumb’s second attempt at implementing the plan.

Following the split, the remaining entity will focus on Bithumb's exchange operations, while the newly formed company will pursue new business ventures to diversify the group's revenue streams.

The split ratio between the surviving entity, Bithumb, and the newly established company is approximately 56 to 44. Shareholders will be issued new shares in the new entity in proportion to their existing ownership. The final decision will be made at an extraordinary shareholders' meeting scheduled for June 13.

Shares of investment-related affiliates held by Bithumb will be transferred to the newly established entity, while shares related to the exchange business will remain with the surviving entity. Those in certain investment subsidiaries will be moved at a later date, following compliance with the tax requirements.

The spin-off plan was initially announced last April, but was postponed shortly after the introduction of the Virtual Asset Users Protection Act.

Industry watchers believe the spin-off is part of Bithumb's broader strategy to support a successful initial public offering. Bithumb aims to go public in the second half of the year with Samsung Securities as its lead underwriter, and it is also exploring the possibility of an overseas listing, such as on Nasdaq.

"We aim to become a more trusted virtual asset exchange by pursuing last year's planned spin-off in a more stable manner, while strengthening investment in our IT division and continuously enhancing user protection and platform stability," a Bithumb official said.

"By establishing independence and specialization for both the exchange and new business divisions, the company will be well-positioned to drive both quantitative and qualitative growth."