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"According to foreign media reports, Bithumb, one of South Korea's four major exchanges, is making another attempt at an initial public offering (IPO) and is expected to go public in the second half of 2025. In the early stages, Bithumb held the top market share but was surpassed by Upbit, creating a significant gap, and it currently holds the second position.
As the second-largest cryptocurrency exchange in South Korea, why is Bithumb so keen on going public? What changes can going public bring to Bithumb, and can it help reclaim the top position in the South Korean market?
According to reports from Korean media, Bithumb's IPO aims to improve governance and management transparency. Simultaneously, external validation of its internal control systems will be undertaken to enhance market trust in its exchange operations. The primary motive behind Bithumb's IPO is likely not to raise funds. According to Bithumb's semi-annual report this year, the company holds assets worth over 400 billion Korean won, making external financing unnecessary for its business operations.
With the impetus of the IPO, efforts to improve the company's structure have already begun. An official familiar with Bithumb revealed that Lee Jung-hoon, the former chairman of Bithumb and Bithumb Holdings, has returned to Bithumb Holdings as a registered director. In anticipation of a successful IPO, Lee Jung-hoon is expected to increase control and initiate internal integration.
Putting aside the current IPO plan, Bithumb has made two previous attempts, both without fruition. Let's review the timeline:
- In January 2019, Bithumb planned a reverse merger with the U.S. listed company Blockchain Industries but faced issues with Bithumb's equity sale and token financing rights protection events, leading to the abandonment of the listing plan.
- In June 2020, the operator of the cryptocurrency exchange Bithumb sought to go public and appointed Samsung Securities to underwrite the IPO, but no subsequent plans for going public were announced.
Bithumb has also considered token financing. In late 2018, Bithumb issued the platform token BXA. However, a series of large-scale cryptocurrency theft incidents and the complex equity structure of Bithumb resulted in the almost complete loss of the BXA token value. Bithumb was also sued by BXA token investors.
In addition to actively seeking IPO opportunities in recent years, several companies, including Huobi, Morgan Stanley, and FTX, have reportedly planned to acquire Bithumb, but these attempts have not materialized.
Bithumb's urgency stems from both industry pressures and its own strategic deployment for further development. Once holding the leading position among South Korean cryptocurrency exchanges and being the world's fifth-largest cryptocurrency exchange, Bithumb has seen its market share gradually eroded by Upbit in recent years. In February of this year, Upbit captured 80% of the South Korean trading market share. Bithumb may hope to reclaim the leading position in the South Korean cryptocurrency market after the success of this IPO plan. While using an IPO to change its fate dramatically may not be realistic, a successful Bithumb IPO could serve as a notable example for exchanges seeking to go public." |
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Post time 16-11-2023 21:08:54