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Bithumb disclosed an operating loss of 14.9 billion won ($11 million) in 2023, citing a 58% revenue drop and Q4’s fee-free policy as contibuting factors.
South Korea’s cryptocurrency exchange Bithumb has revealed an operating loss of 14.9 billion won (~$11 million) for the fiscal year 2023, attributing the decline to a significant drop in revenue and the implementation of a fee-free policy in the fourth quarter.
According to Korean news outlet News1, the Seoul-headquartered exchange reported an annual revenue of 135.8 billion won (~$100.6 million) in 2023, marking a substantial 58% decrease compared to 2022.
The report says Bithumb’s net profit also saw a decline of 75% to 24.3 billion won (~$18 million) compared to 2022, despite maintaining profitability for the fourth consecutive year. The exchange attributed the decrease in revenue to the challenges posed by the crypto winter, resulting in reduced trading volumes.
Additionally, Bithumb cited the introduction of a fee-free policy in Q4 2023, aimed at stimulating trading volumes, as another contributing factor to the revenue decline. The exchange seems determined to outpace its main rival, Upbit, with its decision to remove trading fees already resulting in a surge in market share from 12% in October 2023 to 40% by February this year.
For Bithumb, maintaining financial stability is extremely important, especially considering its forthcoming plans to go public in the second half of 2025 on South Korea’s KOSDAQ stock exchange. As crypto.news earlier reported, Bithumb’s decision to pursue an initial public offering (IPO) appears to be driven by a desire to bolster investor confidence amid intense competition in the domestic market.
