South Korea’s Bithumb announces corporate restructuring in Q3, XRP tanks 2% on the exchange

South Korean crypto exchange Bithumb announced late Monday that it is spinning off part of its non-digital currency operations into a new corporate entity to minimize risk across its business lines. 

The announcement, made through the country’s official DART disclosure platform, revealed the restructuring will take effect on July 31, 2025. Meanwhile, XRP, the most traded token in South Korea, is down 2% against the won in the last 24 hours.

According to the exchange’s translated statement, Bithumb plans to extend its business divisions ahead of a planned initial public offering (IPO), which the company is preparing to execute in Q3 2025. The split will revive a previously delayed initiative in which Bithumb proposed ring-fencing its core exchange operations from other ventures.

Operations split to create ‘Bithumb A’

Per the disclosure, the spun-off company will temporarily operate under the name “Bithumb A,” though the exchange has not yet disclosed its official English title. It will create separate accountability for each line of business under Bithumb’s umbrella.

“By establishing independent accountability for each business division, the spin-off fundamentally prevents risks originating from non-exchange businesses from spreading to the exchange business,” Bithumb stated in the filing.

The exchange added that the decision is expected to maximize corporate efficiency and sharpen the competitiveness of its various divisions. The distribution ratio of shares post-spin-off will be split approximately 56% for the current Bithumb structure and 44% for Bithumb A.

In its filing, Bithumb outlined that the division plan is subject to change, depending on multiple factors, including the financial health of the split company, strategic revisions, or feedback from regulatory agencies and third parties.

“Should the general meeting of shareholders approve the current spin-off plan, several types of amendments may be implemented without requiring further shareholder approval,” the company stated. 

The changes include updates to business activities, those prompted by laws or accounting standards, and modifications deemed necessary without causing material disadvantage to shareholders.

Bithumb recorded a net profit of $110 million in 2024, a 560% uptick compared to the previous year. Despite these gains, Bithumb trailed behind Upbit, South Korea’s largest digital asset exchange, which posted approximately $671 million in net profits for the same period.

According to reports from local financial news outlets, the company has tapped Samsung Securities to serve as the lead underwriter for its debut on the South Korean stock exchange. The exchange has also previously mentioned it could pursue a dual listing on the Nasdaq, though details remain unconfirmed.

XRP falls 2% on Bithumb post-announcement

About a day after Bithumb’s restructuring announcement, XRP, the cryptocurrency tied to Ripple Labs, saw a modest decline of around 2.03% on the exchange. The token hasn’t quite retraced its steps to the highs it clocked in the South Korean market late 2024, and has suffered a 15% loss in the last month.

According to price updates from Bithumb, XRP has shed over 3% of its value against the South Korean currency year-to-date, but is still 278.8% higher than its 12-month lows.

On global markets, at the time of this publication, XRP was trading at approximately $2.08. The digital asset has posted a 294% increase, but is currently in a consolidation phase. Analysts suggest the current price level is being held up by a support zone around $2.07, with resistance clustered between $2.20 and $2.23.

Stolyarov adds, “Would start having more optimism, say higher than $2.17, breaking some technical levels and lines. It will most probably be an X wave before some next consolidation pattern, and there is nothing to cheer about,” he concluded.

Looking at the daily chart, XRP’s pattern suggests there could be a potential breakout toward $3.40 by the end of May, with further upside projected to reach as high as $3.70 by July if momentum holds.

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