TL;DR
- Bithumb is considering a NASDAQ listing and exploring international IPO options.
- The company faces revenue declines amid leadership controversies.
- Bithumb remains a leading crypto trading platform in South Korea.
The South Korean crypto exchange giant Bithumb is reportedly evaluating the prospect of listing on the US NASDAQ, following discussions during a shareholder meeting held on Monday. This marks a strategic pivot, as the company appears to be open to “all possibilities” concerning the location for its initial public offering (IPO).
In a recent report, it was revealed that Bithumb is now considering international options for its IPO, rather than the previously anticipated listing on the KOSDAQ, South Korea’s equivalent of the Nasdaq. Samsung Securities has been appointed as the underwriter tasked with preparing the necessary prospectus—a comprehensive legal document detailing the IPO.
Initial reports indicated that Bithumb planned to launch its IPO on the KOSDAQ in late 2025. However, recent statements suggest a strategic shift towards exploring broader opportunities. According to a Bithumb official, all possibilities are open, not only domestically but also overseas. Despite this, the company has yet to provide an official comment regarding its listing plans.
Exchange’s IPO ambitions have faced challenges due to an internal strategy review. With controversies surrounding former chairman Lee Jeong-hoon identified as a significant hurdle. Additionally, Bithumb Korea’s fiscal year 2023 has been marred by a substantial decline in revenue and net profit, despite a noticeable increase in trading volume.
Bithumb Sees Its Profits Plummet
Revenue plummeted by 57%. From 3.201 billion won in 2022 to just 1.358 billion won in 2023. while net profit fell a staggering 74.5% to 243 billion won. The decline has been attributed to falling cryptocurrency prices. And the introduction of a fee-free trading policy in the fourth quarter. Nevertheless, The exchange has expanded its presence within South Korea. Achieving record Bitcoin trading volumes that surpassed its main competitor. Upbit, with a peak market share of 72% early in 2023.
Data from CoinMarketCap indicates that Bithumb currently ranks as the second-largest spot crypto trading platform in South Korea. Boasting a 24-hour trading volume exceeding $666 million. In contrast, Upbit’s daily trading volume hovers around $2 billion.
