Lawrence Damilola
Bithumb, South Korea’s second-largest cryptocurrency exchange, revealed its intention to explore listing on the U.S. Nasdaq during a shareholders’ meeting yesterday. The company plans to pursue an initial public offering (IPO) in the second half of 2025, with Samsung Securities acting as the primary underwriter.
According to its management, the move to target the U.S. market is aimed at expanding its global reach. “The goal is to strengthen Bithumb’s market position globally, and Nasdaq offers an ideal platform,” a company representative stated. Bithumb had previously considered a listing on South Korea’s KOSDAQ market in 2020, but halted those plans due to uncertainties surrounding virtual asset regulations and accounting standards at that time.
Bithumb, South Korea's second largest cryptocurrency exchange, announced at an extraordinary shareholders' meeting that it is considering listing on the Nasdaq in the United States, with the goal of listing in the second half of next year, with Samsung Securities as the main…
— Wu Blockchain (@WuBlockchain) September 30, 2024
Bithumb Restructuring Ahead of IPO
Earlier this year, the company initiated a restructuring program to streamline its operations and focus on its core business. In March, the company created Bithumb Investment, a new entity responsible for managing investment and real estate brokerage functions. This move separated non-exchange activities from the main cryptocurrency exchange operations. “This restructuring allows us to concentrate on our primary exchange business and improve financial health in preparation for a public listing,” Bithumb officials said during the shareholders’ meeting.
The management further stated that restructuring was critical in preparing for a potential U.S. listing. The creation of Bithumb Investment is designed to enhance operational efficienc and align the exchange with Nasdaq’s listing requirements.
Challenges in the Domestic Market
Bithumb’s focus on an international listing comes amid ongoing challenges in South Korea’s regulatory environment. The country currently lacks a legal framework for Bitcoin ETFs, and virtual assets are not classified as financial products. These obstacles have led it to look beyond the domestic market.
In addition, the company has faced regulatory scrutiny in South Korea, as evidenced by a recent 130 million won corporate tax charge, which was cleared last month. “We remain committed to complying with all regulations as we continue to navigate the evolving legal landscape,” the company said.
The shareholders’ meeting also saw the approval of a motion to rename the company from Bithumb Korea to simply Bithumb, part of an effort to increase its brand visibility ahead of the IPO.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
