Bithumb, South Korea’s second-largest cryptocurrency exchange, is quickly catching up to market leader Upbit while also competing for prime real estate in Seoul’s Gangnam district. Both companies say they are securing office space for business expansion, but experts believe they are also investing in real estate as a stable asset.
According to the investment banking (IB) industry on March 17, Bithumb recently decided to buy Gangnam N Tower on Teheran-ro through a private deal. With its workforce now over 500 due to the booming crypto market, the company decided to relocate. The final sale details, including price confirmation, are expected to be completed by April. Reports suggest the exchange has offered around 44 million won ($30,400) per 3.3 square meters.
The digital asset trading platform has been actively acquiring prime office buildings in Gangnam. In 2021, it purchased a three-story building in Daechi-dong for about 140 billion won ($97 million). In 2022, it bought Samseong Daese Building (formerly Saemyung Building) for around 160 billion won ($110 million), paying entirely in cash. These buildings were demolished to build the Bithumb Sharing Center, located near Teheran-ro and just a minute’s walk from Samseong Station.
However, the crypto exchange has not always succeeded in its real estate deals. In 2023, it placed the highest bid for T412 (formerly Samsung Life Daechi 2 Building) but lost to bedding company Allerhand. In 2024, it also participated in the Koreit Tower sale but was outbid by Koramco Asset Management.
During this period, Upbit’s operator, Dunamu, also acquired several buildings near Gangnam Station and Samseong Station. In 2023, it invested 200 billion won in DF Tower (formerly A Plus Asset Tower), which Koramco REITs Management & Trust had purchased for 430 billion won through a REIT. In 2024, Dunamu bought the Youngbo and Youngbo 2 buildings—located just 100 meters from Samseong Station—from its affiliate Capstone Private Real Estate Investment Company No. 4 for over 300 billion won. Back in 2021, it also secured land in the Samseong-dong area to develop a new headquarters.
Over the past five years, both companies have purchased six buildings in Gangnam, Seocho, and Songpa districts, mostly along major business streets like Gangnam-daero and Teheran-ro. While they claim these acquisitions are for office expansion, experts see another reason. With the crypto market’s high volatility, they may be securing real estate as a stable asset. They are also looking to create new revenue streams beyond trading fees.
An industry insider said, “Many prime Gangnam buildings are now owned by Dunamu and Bithumb. With regulators tightening oversight on Upbit, the latter’s market share has risen to nearly 30%, and the competition for Gangnam real estate is likely to heat up even more.”
