Bithumb Korea, the entity behind the South Korean cryptocurrency exchange Bithumb, disclosed a substantial annual revenue decline of 57% for fiscal 2023.
As reported by South Korean news outlet Newdaily on April 2, the exchange's annual sales revenue plummeted by 57.6% from 3.201 billion won in 2022 to 1.358 billion won in 2023. Similarly, net profit experienced a significant decrease of 74.5%, dropping to 243 billion won in 2023 from 954 billion won in the preceding year. Despite this decline, Bithumb managed to maintain a surplus for the fourth consecutive year.
Attributing the financial losses primarily to the crypto winter phenomenon, Bithumb cited a notable downturn in cryptocurrency values as a contributing factor.
In addition to market conditions, Bithumb's adoption of a free trading policy in the fourth quarter of the previous year was identified as a factor contributing to the decline in revenue. Despite these challenges, the exchange intensified efforts to enhance accessibility across South Korea throughout the year, with plans to further improve service quality in the upcoming period.
The announcement of Bithumb's financial losses coincided with Crypto.com's declaration of its intention to launch a cryptocurrency trading app for South Korean retail investors on April 29, potentially intensifying competition in the local market. Concurrently, reports emerged suggesting Bithumb's aspiration to become the first digital asset company to list on the South Korean stock market, with plans for an initial public offering (IPO) on Kosdaq in the second half of 2025.
However, amid these ambitions, Bithumb reportedly reconsidered its IPO plans following scrutiny surrounding the involvement of former chairman Lee Jeong-hoon in the company. While the IPO delay was attributed to internal strategic reassessment rather than legal issues related to Chairman Lee, it reflects the evolving institutional landscape and internal challenges within Bithumb.
