Wemade Becomes Second Largest Shareholder of Bident, 'Bithumb' Acquisition Imminent

[Asia Economy Reporter Kang Nahum] Wemade has invested 50 billion KRW in Bident, laying the groundwork for the acquisition of the cryptocurrency exchange ‘Bithumb.’ Bident is the single largest shareholder of Bithumb Holdings.

Jang Hyun-guk, CEO of Wemade, said during a conference call on the morning of the 16th regarding the Bident investment, "Cryptocurrency exchanges will serve as hubs for the metaverse and virtual asset economy that will unfold in the future," adding, "The investment is driven not only by the financial effects from the increase in cryptocurrency trading volume but also by its great potential."

Wemade announced the day before that it had signed a strategic partnership with Bident and secured the position of the second-largest shareholder through the investment. The investment amount is 50 billion KRW, and the investment method is the acquisition of bonds with warrants (BW). Bident is a major shareholder of Bithumb, holding 10.25% of Bithumb Korea and 34.24% of Bithumb Holdings. Notably, Bithumb Korea recorded sales of 250.2 billion KRW and operating profit of 222.5 billion KRW in the first quarter of this year.

Through this investment, Wemade will also participate in Bident’s board nominations and management. Regarding the management participation method, CEO Jang explained, "Nothing is specifically decided yet. However, we have agreed to utilize Wemade’s capabilities to help Bithumb become a better company," adding, "How exactly we will assist will be discussed and carried out with Bident."

Industry insiders view this investment as an intermediate step toward Wemade’s acquisition of Bithumb. Wemade has been putting considerable effort into acquiring Bithumb. CEO Jang also stated, "This investment in Bident was made because of Bident’s ownership of Bithumb," adding, "However, the shareholder structure of Bithumb is multi-layered, making a typical M&A where you acquire the major shareholder impossible. We will cooperate with Bident step-by-step according to the complex shareholding structure, and the first step was securing the shares announced the day before."

Meanwhile, CEO Jang also revealed plans to enter the Chinese market through the issuance of a license for the mobile MMORPG ‘Mir4.’ He said, "The issuance of foreign licenses for domestic games in China is gradually improving," and added, "We plan to complete the license issuance within this year and launch in the Chinese market next year by leveraging the improved environment."