SEOUL - South Korean cryptocurrency exchange Bithumb has announced its plans to go public in 2025, aiming to list on the KOSDAQ with a possibility of switching to KOSPI. The initial public offering (IPO), which will be underwritten by Samsung (KS:005930) Securities, is part of Bithumb's strategic move to reclaim its position as a market leader from rival Upbit.
The decision to pursue an IPO does not stem from a need for external capital, as Bithumb boasts substantial financial assets exceeding 400 billion won. Instead, the company is focusing on corporate restructuring and improving its governance and transparency. A significant step in this direction includes the reinstatement of Lee Jeong-hoon as a registered director at Bithumb Holdings. This move coincides with the dismissal of CEO Lee Sang-jun amid allegations of coin listing solicitation.
Bithumb's commitment to enhancing its public image and regaining trust is further evident in its recent partnership with Samsung Securities. By going public, Bithumb aims to open its internal control systems to public scrutiny, thereby increasing credibility and transparency. The choice between listing on Kospi or Kosdaq remains undecided as of today.
This push for transparency follows earlier challenges faced by the exchange, including a raid on its Seoul office by tax authorities earlier this year over suspicions of fraudulent crypto trading activities. These events have underscored the importance of robust governance measures and have been instrumental in shaping Bithumb's path towards an IPO.
With these structural changes and strategic alliances, Bithumb is positioning itself to not only recover from past controversies but also solidify its standing in the competitive cryptocurrency exchange market.
InvestingPro Insights
In light of Bithumb's upcoming IPO, it's worth noting some key insights from InvestingPro. Firstly, strong earnings should allow for continued dividend payments, a testament to the financial stability of the company (InvestingPro Tip 0). This is in line with Bithumb's substantial financial assets, removing the need for external capital.
Secondly, Bithumb's prominence in the Capital Markets industry (InvestingPro Tip 4) is a key factor in the company's strategic move to reclaim its market leadership position. This is further emphasized by the company's commitment to improving its governance and transparency.
Finally, the data from InvestingPro shows that Bithumb has maintained dividend payments for 20 consecutive years (InvestingPro Tip 5). This consistency, coupled with the company's liquid assets exceeding short term obligations (InvestingPro Tip 6), adds to Bithumb's attractiveness as an investment opportunity.
For a more comprehensive analysis, InvestingPro offers an additional 4 tips related to Bithumb's financial performance and market position. This valuable information can be found in the InvestingPro's product that includes additional tips, providing investors with a more in-depth understanding of the company's financial health and market standing.
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