As a seasoned financial analyst with over two decades of experience under my belt, I have witnessed the ebb and flow of various markets and industries. The news that Bithumb, one of South Korea’s largest crypto exchanges, is considering going public on the Nasdaq stock exchange in the U.S. piques my interest significantly.
Crypto trading platform Bithumb plans to launch an initial public offering (IPO) on the American Nasdaq Stock Market during the second half of next year, with the goal of going public.
It’s been reported that Bithumb, one of South Korea’s major cryptocurrency exchanges, might go public in the U.S., aiming for a Nasdaq listing by mid-2025. This information comes from a report by the Korea Economic Daily. During their shareholders meeting, they allegedly discussed and confirmed this plan, mentioning that they are actively seeking an Initial Public Offering (IPO) with Samsung Securities as the primary underwriter.
Back in March, I made a decision that Bithumb would undergo a 60:40 corporate share split. The goal was to enhance its Initial Public Offering (IPO) potential by concentrating on our core crypto exchange operations. This new entity, provisionally called Bithumb Korea or Bithumb Investment, will assume responsibility for non-essential activities like investment and property leasing, as per the report I’ve been following.
This action is anticipated to refine Bithumb’s concentration on its trading platform, as it plans to separate other business sectors to boost its overall value.
Bithumb gears up for plan B
Bithumb has made a previous attempt at becoming publicly traded. In 2020, they considered listing on Kosdaq, but ultimately paused the process because of uncertain regulations and accounting guidelines related to cryptocurrencies.
Although South Korea’s regulatory climate remains challenging for cryptocurrency-based financial services like Bitcoin ETFs, Bithumb might discover a friendlier setting in the U.S., where Coinbase, a different digital currency exchange, is currently traded on the Nasdaq stock market.
At the start of April this year, Bithumb announced a financial loss of approximately $11 million during fiscal year 2023. This loss was attributed to a significant decrease in income and a policy change made in the last quarter that waived fees. For the entire year of 2023, their total revenue amounted to $100.6 million, marking a 58% drop compared to the previous year’s figures.
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2024-09-30 16:02