Bithumb Meta Rebrands to Bithumb Partners with Increased Capital
South Korean cryptocurrency exchange Bithumb has rebranded its subsidiary Bithumb Meta to Bithumb Partners. This change took place in the fourth quarter of 2024, with an increase in capital from 29 billion won to 30 billion won. Bithumb now holds 100% ownership after previous investors, including LG CNS, CJ OliveNetworks, and SK Square, liquidated their stakes in the second half of last year. Bithumb Meta, which focused on NFTs and the metaverse, did not achieve significant results, leading to substantial investor losses.
New Leadership and Focus on Short-Term Financial Activities
The leadership team has been completely restructured, with Im Tae-seong appointed as CEO. Key positions are now held by Bithumb executives and employees, enhancing alignment with the parent company’s objectives. Cho Hyun-sik, the founder of Bithumb Meta, and the entire team have departed. During the liquidation, Choi Ma-yeol served briefly as CEO.
Bithumb Partners will focus on short-term financial activities, contrasting with Bithumb Investment's long-term investment strategy. The company has invested in convertible bonds of KOSDAQ-listed firms and other businesses like Iwin, Barunson, T&R Biofab, and Vidente.
Bithumb Partners Positioned for Growth Ahead of IPO
While focusing on managing existing financial assets in the short term, Bithumb Partners may evolve into a more prominent player in the investment sector. It could pursue roles as either a strategic investor, aligning investments with long-term goals, or as a financial investor, aiming for returns. A spokesperson remarked:
“Since it takes a lot of time to create a new corporation and liquidate the existing corporation, we changed Bithumb Meta to Bithumb Partners. Bithumb Partners will manage assets currently held by Bithumb, such as stocks and bonds, and invest in short-term financial products.”
This transformation is part of Bithumb's preparations for an IPO slated for 2025. Establishing an investment-focused subsidiary aligns with efforts to streamline operations and finances for the IPO. Observers note this development resembles a previously announced spin-off plan from 2023 aimed at creating a new investment company. Although that plan was withdrawn, Bithumb Partners appears to fulfill a similar role, positioning the company for growth in both cryptocurrency and traditional financial markets.
“When Bithumb formalized its spin-off, it created a system of an exchange-centered surviving corporation and a new investment corporation. The launch of this investment subsidiary seems somewhat related. Attention is focused on what changes Bithumb, which announced an IPO this year, will pursue, such as establishing a subsidiary,” a spokesperson disclosed.