The exchange created a new corporation in anticipation of an initial public offering (IPO), according to a registration on the nation’s corporate registry.
In order to concentrate on a public listing of its primary cryptocurrency exchange operations, Bithumb is restructuring its organizational structure. Bithumb A, a new company, will manage assets and venture investments while concentrating on financial products.
Prior to contemplating a listing on the Nasdaq, Bithumb intends to list on the Kosdaq in South Korea. As it restructures in anticipation of an initial public offering (IPO), Bithumb intends to separate its primary cryptocurrency exchange business from other operations.
Bithumb Korea will concentrate exclusively on running the main cryptocurrency exchange business after the Seoul-based company splits in two. According to local media, which cited the nation’s corporate registry, Bithumb Korea will be the organization pursuing a public listing.
The other division, a recently established organization known as Bithumb A, will be in charge of asset management, venture capital, and new business projects. On July 31, the reorganization is scheduled to go into effect.
To create “Bithumb A,” operations divided.
Although the exchange has not yet revealed its official English title, the report states that the spun-off company would temporarily conduct business under the name “Bithumb A.” It will establish distinct accountability for every business division that falls under Bithumb’s purview.
According to Bithumb’s filing, “the spin-off fundamentally prevents risks originating from non-exchange businesses from spreading to the exchange business by establishing independent accountability for each business division.”
The decision is anticipated to optimize business efficiency and enhance the competitiveness of its different divisions, the exchange continued. Following the spin-off, roughly 56% of the shares will be distributed for the current Bithumb structure and 44% for Bithumb A.
