Bithumb Meta rebrands into Bithumb Partners with a focus on investments

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As an analyst, I can share that Bithumb, a prominent South Korean cryptocurrency exchange, has rebranded its previously defunct subsidiary, Bithumb Meta, into a new entity called Bithumb Partners.

According to BizWatch’s report today, this rebranding marks a significant strategic shift for the company. Beyond just changing the name, they are now focusing on investment operations and creating a new division called Bithumb within their structure.

As a researcher looking into the financial developments of Bithumb in 2024, I found an interesting transition. In Q4 of 2024, Bithumb underwent a rebranding and infused an additional 1 billion KRW, equivalent to approximately 6,80,099 USD, significantly boosting the capital reserves of their subsidiary to nearly 2 million dollars.

However, in the preceding year, key investors such as LG CNS, CJ OliveNetworks, and SK Square parted ways with Bithumb Meta. This decision was prompted by the fact that the subsidiary’s NFT and metaverse projects did not meet their initial expectations.

Effective immediately, Bithumb’s leadership will be taken over by a new appointment, Im Tae-seong, who has joined from outside the company. Consequently, the senior management at Bithumb will now hold all crucial positions, similar to an internal hierarchy and audits. Additionally, this reorganization resulted in the departure and disbandment of the founding team of Bithumb Meta.

💡As a crypto investor, I’ve just learned that Bithumb Meta, under the Korean cryptocurrency exchange Bithumb, is being restructured into Bithumb Partners, with an investment of around $2.3 billion. The new company will focus on short-term investments in stocks and bonds.

This move could be seen as a step towards Initial Public Offering (IPO) preparation by Bithumb Official.

— ChainCatcher (@ChainCatcher_) January 6, 2025

Bithumb Associates will function as a temporary investment platform focusing on themed stock and bond deals using funds from within Bithumb. This differs from Bithumb Investment, which primarily focuses on external investment opportunities. Notably, Bithumb has previously invested in convertible bonds of companies listed on KOSDAQ, such as Iwin, Barunson, and T&R Biofab. For now, Bithumb Partners aims to manage current short-term investments and may also consider expanding into a more substantial strategic or financial investor in the future.

Industry experts shared a widespread belief about Bithumb Partners in the first half of 2023. The planned ‘spinoff’ of Bithumb was reported, with an aim to establish an investment company focusing on managing investments and real estate through leasing. However, Bithumb Partners is actually a refined version of the original idea, following a more efficient process than initially intended.

Instead of maintaining Bithumb Meta, we’ve transformed it into Bithumb Partners to simplify our operations and concentrate on handling assets such as stocks, bonds, and short-term financial investments. Establishing a new company from the ground up and dissolving the old one would have been quite laborious.

Bithumb spokesperson.

Bithumb’s IPO positioning

This new development aligns with Bithumb’s statement that they aim to go public (through an Initial Public Offering) in 2025. Establishing a subsidiary focused on investments seems to be part of a larger strategy to streamline their corporate structure and financial operations, which are being readied for the anticipated IPO.

Instead, some individuals explained that your company transformed Bithumb Meta into Bithumb Partners for smoother operation management, with a concentration on stock and bond assets as well as short-term investment opportunities. Rather than creating a new asset and dissolving the existing one, it would be far too time-consuming to do so.

In line with Bithumb’s plans, they intend to launch an Initial Public Offering (IPO) in the U.S. by 2025. Establishing an investment-focused subsidiary is a significant step towards organizing corporate structure and operations efficiently before the IPO takes place.

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2025-01-06 08:34