In a significant move aimed at streamlining operations and enhancing growth, Bithumb Korea, a leading South Korean cryptocurrency exchange, has announced plans to segregate its investment and property holdings into a newly established entity, Bithumb Investment. This strategic decision will enable Bithumb Korea to concentrate exclusively on its primary crypto trading platform, thereby improving the quality and reliability of its trading services.
Division of Operations
The newly formed Bithumb Investment will inherit the responsibility of managing the company’s diverse investments, asset holdings, and real estate leasing activities. This division allows Bithumb Korea to focus on its core exchange operations while granting Bithumb Investment the independence to pursue various investment opportunities.
Ownership and Approval Process
Upon the split’s completion, Bithumb Korea will retain a 60% ownership stake in Bithumb Investment, with the investment arm holding the remaining 40%. However, this separation is subject to formal approval by shareholders at a meeting scheduled for May 10th. If greenlit, the split is anticipated to be finalized by June 13th.
According to a Bithumb Korea official, the separation aims to foster growth and explore new opportunities by granting operational independence and flexibility to each business unit through distinct ownership. This move is also poised to position Bithumb Korea advantageously ahead of its planned initial public offering (IPO) next year, with the company seeking to be valued based on its cryptocurrency exchange business.
Revenue Insights
Currently, trading fees and commissions represent the lion’s share of Bithumb Korea’s revenue, accounting for approximately 90%. The restructuring underscores Bithumb Korea’s commitment to enhancing its exchange operations and underscores the growing trend of crypto exchanges optimizing their business structures for better performance and investor appeal.
