Kim Jae-wook, former CEO of Bithumb, to become the largest shareholder of the cryptoexchange
Vidente, a Kosdaq-listed broadcasting equipment company led by former Bithumb CEO Kim Jae-wook, is expected to become the largest shareholder of Bithumb. Vidente secures 23.24 percent stake in Bithumb, becoming the largest shareholder On Oct. 31, Vidente announced through corporate filing that it will purchase 23.24 percent of BTC Holding, which is the holding unit of cryptocurrency exchange Bithumb, for 115.08 billion won ($99.18 million). The deal is scheduled to be finalized on Nov. 22. Vidente will become the largest shareholder of Bithumb, with 32.74 percent of the company’s shares. Originally, BXA consortium, led by BK Group Chairman Kim Byung-gun, was expected to become the largest shareholder of Bithumb by acquiring a 51-percent stake in BTC Holding for 40 billion won. The consortium paid part of the offer price but failed to pay the final instalment by the Sept. 30 deadline, and the deal ultimately fell apart. Shareholders of BTC Holding then decided to unload the shares that were to be purchased by BXA consortium, under the right of pledge. A pledgee has the right to sell the pledge shares if payment is not made on time. Vidente then bought the shares. Will Vidente take management rights of Bithumb? If Vidente buys additional shares of BTC Holding in the next round of share sales and ends up holding over 50 percent of the holding company’s shares, the broadcasting equipment company can have majority control of Bithumb. Industry insiders say former Bithumb CEO Kim can fix the complicated governance structure of the cryptocurrency exchange and improve management. There were also rumors that many shareholders of BTC Holding also wanted to give shares to Kim after BXA consortium failed to make full payment. If all goes as expected, Bithumb will be able to solve risks related to its governance structure and focus on future business. Korea Exchange announced after the end of trading on Nov. 1 Vidente shares will be suspended temporarily.