Bithumb Korea Posts Disappointing Financial Figures – Despite Bumper Transaction Volumes
Bithumb Korea, the operator of the Bithumb crypto exchange, has reported a year-on-year decline in profitability for the Financial Year 2023, despite recent upturns in trading volumes.
Per the South Korean media outlet New Daily, year-on-year sales figures fell by 58%, according to a Bithumb statement on April 2.
However, while the company’s performance shrank compared to 2020, its profits remained in the black.
Bithumb Korea said its exchange business “recorded operating losses of [just over $11 million]” in FY2023.
The firm had posted sales revenue of $236.7 million in FY2022, but this shrank to just over $100 million in FY2023, the firm said.
Net profit also fell to $18 million, a 74.5% decrease from the previous year’s $120 million. The decline failed to send Bithumb Korea into the red, however.
Instead, the firm has now posted net profits for four consecutive financial years. Bithumb officials claimed that crypto winter had taken its toll on the firm’s performance. A spokesperson said:
“Last year, we focused on improving usability and strengthening customer service in the difficult market environment of crypto winter. This year, we will continue to introduce differentiated services to improve our performance.”
Some believe the exchange’s decision to suspend commission fees last year may have hurt profitability.
The firm decided to stop charging commission on coin trades on October 4 last year in a bid to claw back market share from the market-leading Upbit.
This policy proved a dramatic success. It briefly saw Bithumb transaction volumes outstrip those on the Upbit platform.
However, critics have pointed out that almost all of South Korean exchanges’ revenue comes from commission fees.
Bithumb ended commission-free trading
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