In the last quarter of 2024, South Korean cryptocurrency exchange Bithumb rebranded its subsidiary, Bithumb Meta, as Bithumb Partners. The announcement also disclosed an increase in the company’s capital from 29 billion won at its inception as Bithumb Meta to a new capital of 30 billion won for the newly renamed entity.
Previous stakeholders in Bithumb Meta, such as LG CNS, CJ OliveNetworks, SK Square, and others, sold their shares in the second half of last year. Now, Bithumb holds all the shares, as Bithumb Meta, which was centered around NFTs and the metaverse, did not yield substantial success, resulting in investors losing a significant portion of their investments.
New Leadership and Focus on Short-Term Financial Activities
The management structure has undergone a complete overhaul, designating Im Tae-seong as CEO. Important positions such as directors and auditors are now occupied by executives and staff from Bithumb, creating a more cohesive approach with the company’s parent goals. Notably, Cho Hyun-sik, founder of Bithumb Meta, along with the entire Bithumb team, have departed. During the dissolution phase, Choi Ma-yeol, a planning director at Bithumb Holdings, temporarily assumed the role of CEO.
Unlike Bithumb Investment, which concentrates on long-term investments in external firms, Bithumb Partners is designed for short-term financial transactions. While Bithumb has made investments in convertible bonds of companies listed on KOSDAQ and entities like Iwin, Barunson, T&R Biofab, and Vidente with a focus on long-term growth, Bithumb Partners caters to quicker financial activities.
Bithumb Partners Positioned for Growth Ahead of IPO
As an analyst, I foresee that Bithumb Partners will primarily focus on managing current assets in the near future. However, there’s a significant potential for growth within the investment landscape. This could manifest in two primary roles: as a strategic investor, where investments would align with the company’s long-term vision, or as a financial investor, prioritizing profitable returns. A representative has confirmed this perspective.
As an analyst, I’ve streamlined our corporate structure to better align with our strategic goals. Instead of creating a new corporation from scratch and liquidating the existing one, we have rebranded Bithumb Meta to Bithumb Partners. This new entity will now oversee the assets previously held by Bithumb, including stocks and bonds. Furthermore, Bithumb Partners will venture into short-term investment opportunities in financial products.
In preparation for its Initial Public Offering (IPO), scheduled for 2025, Bithumb is reportedly establishing an investment-focused subsidiary. This move seems to be part of a broader strategy to reorganize their structure and finances in anticipation of the IPO. Notably, this step mirrors a spin-off plan announced by Bithumb in 2023, which aimed to create a new investment-centric company. Although that previous plan was later withdrawn, Bithumb Partners appears to serve a similar purpose, setting the stage for growth in both the crypto and traditional finance sectors.
When Bithumb completed its spin-off, it created both an exchange-focused surviving corporation and a new investment corporation. This suggests that the launch of the investment subsidiary may be connected in some way. There’s growing interest in finding out what changes Bithumb, which has declared an IPO this year, will implement, such as establishing a new subsidiary. A representative provided this information.
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2025-01-06 18:18