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News

Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million

August 16, 2023 - Around 2 mins mins to read

Key Points:

  • Bithumb’s Q2 saw a 3.4 billion won loss due to low trading and static asset prices.
  • Despite challenges, the net loss improved from 43.3 to 8.583 billion won.
  • Bithumb offers fee-free assets to boost investor interest and liquidity.
Bithumb Korea, the operator of the virtual asset exchange Bithumb, has reported an operating loss of 3.4 billion won in the second quarter, marking a significant downturn compared to the same period last year, Decenter said.
Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million
Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million 2

According to the Electronic Disclosure System of the Financial Supervisory Service, the company’s operating loss of 3.442 billion won in Q2 is a reversal from the 3.842 billion won operating profit recorded in the previous year’s corresponding timeframe.

This drop in performance is mirrored by a 60% decrease in operating income, which amounted to 31.993 billion won.

The financial report, released on August 16, also reveals a positive aspect amidst the financial challenges. The net loss for the current period has shown improvement, decreasing from 43.3 billion won in the previous year to 8.583 billion won.

Bithumb’s struggles during the second quarter are largely attributed to reduced commission income due to a decline in virtual asset trading volume. The stagnant prices of virtual assets, particularly below the $30,000 mark, impacted investor sentiment negatively.

Despite short-lived rebounds prompted by positive developments such as Bitcoin (BTC) spot exchange-traded fund (ETF) applications and legal victories involving Ripple (XRP), sustained upward movement remained elusive.

In response, Bithumb is initiating a fee-free event for select virtual assets as a strategic move to boost trading volume.

Currently, the company has waived fees for 30 virtual asset types, including Solana (SOL), Ethereum Classic (ETC), and Sandbox (SAND). This initiative aims to increase liquidity, entice new investors, and facilitate fresh capital inflow.

The company’s outlook hinges on its ability to revitalize trading volume and regain market confidence in the face of ongoing market challenges.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million

Key Points:

  • Bithumb’s Q2 saw a 3.4 billion won loss due to low trading and static asset prices.
  • Despite challenges, the net loss improved from 43.3 to 8.583 billion won.
  • Bithumb offers fee-free assets to boost investor interest and liquidity.
Bithumb Korea, the operator of the virtual asset exchange Bithumb, has reported an operating loss of 3.4 billion won in the second quarter, marking a significant downturn compared to the same period last year, Decenter said.
Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million
Bithumb Korea’s Operating Loss In The Second Quarter Was Approximately $2.57 Million 4

According to the Electronic Disclosure System of the Financial Supervisory Service, the company’s operating loss of 3.442 billion won in Q2 is a reversal from the 3.842 billion won operating profit recorded in the previous year’s corresponding timeframe.

This drop in performance is mirrored by a 60% decrease in operating income, which amounted to 31.993 billion won.

The financial report, released on August 16, also reveals a positive aspect amidst the financial challenges. The net loss for the current period has shown improvement, decreasing from 43.3 billion won in the previous year to 8.583 billion won.

Bithumb’s struggles during the second quarter are largely attributed to reduced commission income due to a decline in virtual asset trading volume. The stagnant prices of virtual assets, particularly below the $30,000 mark, impacted investor sentiment negatively.

Despite short-lived rebounds prompted by positive developments such as Bitcoin (BTC) spot exchange-traded fund (ETF) applications and legal victories involving Ripple (XRP), sustained upward movement remained elusive.

In response, Bithumb is initiating a fee-free event for select virtual assets as a strategic move to boost trading volume.

Currently, the company has waived fees for 30 virtual asset types, including Solana (SOL), Ethereum Classic (ETC), and Sandbox (SAND). This initiative aims to increase liquidity, entice new investors, and facilitate fresh capital inflow.

The company’s outlook hinges on its ability to revitalize trading volume and regain market confidence in the face of ongoing market challenges.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.