According to a new report, Bithumb – one of the more popular cryptocurrency exchanges, is eyeing a public listing in the US. In order to accomplish this, the company will go through a reverse merger process.
Bithumb to Go Public
Singapore-based Bithumb, one of the popular cryptocurrency exchanges, may become the first publicly listed cryptocurrency exchange in the US, according to a new CNBC report.
Blockchain Industries, which is a publicly traded company in the US, has signed a binding letter of intent with BTHMB, which will be renamed to Blockchain Exchange Alliance (BXA).
This is a process which is referred to as a reverse merger. It’s known to be a faster alternative for companies which seek to go public compared to the conventional initial public offering (IPO).
CNBC cites unnamed sources familiar with the matter, who say that BXA has considered getting its listing in Singapore. However, it has decided to forgo it because the waiting period for an IPO there is too long.
It’s Been Done Before
Bithumb is not the first company to use a reverse merger in order to get a public listing. Last year, cryptocurrency proponent and former Wall Street hedge fund manager Michael Novogratz did the same.
He bought a crypto start-up Coin Capital located in Canada. After that, he merged it with a shell company called Bradmer Pharmaceuticals which was already listed. The new venue was renamed to Galaxy Digital Holdings and it was listed on Canada’s TSX Venture Exchange.
In November, Live Bitcoin News reported that Bithumb is set to launch a security token exchange in partnership with a US fintech company.
What do you think of Bithumb’s intentions to obtain a US public listing? Don’t hesitate to let us know in the comments below!