Bithumb, one of South Korea's leading cryptocurrency exchanges, has spun off its now-defunct subsidiary, Bithumb Meta, into Bithumb Partners.
As reported Bizwatch Today, rebranding is interpreted as a major strategic change. Aside from the name, the focus changed to investment operations, leading to the formation of a new entity within Bithumb.
In the fourth quarter of 2024 Beethumb The brand was rebranded and another 1 billion KRW or $6,80,099 was injected, bringing the total capital of the 100% owned subsidiary of Bithumb to about $2 million. In 2023, previous investors in Bithumb Meta – such as LG CNS, CJ OliveNetworks, and SK Square – have now left as the subsidiary did not live up to their expectations from She denied And metaverse projects.
Bithumb Partners will now be officially led by an external recruiter named Im Tae-seong. Accordingly, management at Bithumb will hold all key positions, just like internal directory and audits. The changeover also ended with the departure and dissolution of Bithumb Meta's founding management team.
Thus, Bithumb Partners should be a short-term investment vehicle in stock and bond trades that use Bithumb's internal funds. This is in contrast to Bithumb Investment, which is mostly engaged in offshore investments. Furthermore, Bithumb has historically invested in convertible bond investments in... KosdakListed companies are Iwin, Barunson and T&R Biofab. Currently, Bithumb Partners is looking to continue overseeing existing short-term fixed investments as well as potentially expand to become a full-fledged strategic or financial investor.
There was a common sentiment among industry experts regarding Bithumb Partners, the intended “spin-off” of Bithumb was announced in the first half of 2023. There was a vision to create an investment company that would be used to conduct investment and real estate management operations through leasing. However, Bithumb Partners is the brainchild of the previous vision but takes a more streamlined process than the initial plan.
“We restructured Bithumb Meta into Bithumb Partners to streamline operations and focus on managing assets such as stocks and bonds, as well as short-term financial investments. Creating a new entity from scratch and liquidating the old entity would have taken a long time.
Bithumb spokesperson.
Locating the Bithumb IPO
This development coincides with Bithumb's announcement that it intends to conduct an IPO in 2025. The formation of an investment-focused subsidiary is likely to fall within a broader optimization effort of its corporate structure and financial business towards the planned IPO.
Some of them said that your company reorganized Bithumb Meta into Bithumb Partners to more easily streamline operations and focus on asset management related to Stocks Bonds and short-term financial investments. Creating a new asset from scratch and liquidating the old one can take a long time.
This comes in parallel with Bithumb's proposal advertisement To go for an IPO in the US by 2025. Forming an investment-focused subsidiary is a major effort to put the company's structure and operations in place before the IPO itself.
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