South Korea’s Bithumb is preparing for a major corporate restructuring. The company announced on April 21 that it will go ahead with a long-delayed spin-off, aiming to split its business operations. 

This move is expected to take effect on July 31, 2025. It comes as Bithumb gears up for an initial public offering (IPO) later this year, intending to improve accountability and operational focus across its divisions.

The Structure of the Spin-Off

The newly formed unit will be called Bithumb A, though its official English name hasn’t been confirmed yet. According to the company’s filing on South Korea’s electronic disclosure system, DART, this change is intended to prevent risks from one part of the business affecting another. 

Bithumb made it clear that separating non-exchange operations from its core exchange service will help contain any future issues.

The share structure after the split will divide equity roughly 56% to the current Bithumb and 44% to the new entity. This separation is also expected to boost the efficiency of each division by letting them focus on their individual goals.

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Financial Turnaround in 2024

Bithumb’s decision to move forward with the spin-off comes on the heels of strong financial results for 2024. The company reported an operating profit of 130.7 billion won, which is around $90.1 million. 

This marks a dramatic turnaround from the 14.8 billion won operating loss it posted in 2023. Revenue for the year rose sharply, up 265.4% year-over-year, reaching 496.3 billion won. 

The growth was largely credited to the recovery in global crypto markets, which helped increase trading volumes and boost earnings.

Legal Issues Linger

Despite its strong financial performance, Bithumb continues to face legal scrutiny. In March, South Korean prosecutors raided its headquarters in Yeoksam-dong. The investigation focuses on allegations that a former CEO used company funds to purchase an apartment. 

These developments have raised concerns, even as the company pushes forward with its IPO and restructuring plans.

Bithumb believes that the spin-off will support its long-term goals by streamlining operations and reducing risks. It also shows the company’s intention to build investor trust and transparency before entering the public markets. 

While challenges remain, particularly around legal investigations, the company appears focused on reshaping itself for the future.

The July spin-off signals a big shift for Bithumb as it tries to clean up its image and prepare for a potential IPO. By separating its core exchange business from other operations, it aims to protect its strengths and address its weaknesses. 

With strong earnings and a clearer structure, the company is positioning itself to take on a more stable and competitive role in the evolving crypto landscape.

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