South Korean cryptocurrency exchange Bithumb, reported a 57% decrease in Annual revenue days after announcing a delayed IPO.
An April 2 article from Korean news outlet Newdaily stated that the Seoul-based exchange’s annual sales revenue decreased by 57.6% to 1.358 billion Korean won in 2023 from 3.201 billion won in 2022.
Although net profit decreased by 74.5% to 243 billion won in 2023 from 954 billion won the previous year, it was still in excess for the fourth year.
According to Bithumb, the primary cause of the financial losses was the drop in cryptocurrency values brought on by the “crypto winter.”
In the fourth quarter of last year, Bithumb also provided a fee-free trading policy, which may have impacted the exchange’s declining income.
Throughout the challenging market conditions last year, the exchange concentrated on expanding its availability throughout South Korea. According to a Bithumb representative who spoke with Newdaily, the company will keep enhancing its offerings this year to spur performance gains.
The announcement of Crypto.com’s intention to release a cryptocurrency trading app for South Korean retail investors on April 29 coincided with the financial loss, which may threaten Bithumb’s market position.
Bithumb Postpones IPO
Local media reports initially surfaced at the beginning of November 2023 and stated that Bithumb planned to become the first digital asset company to go public on the South Korean stock exchange.
According to the sources, Bithumb was getting ready to go public on the Kosdaq, South Korea’s equivalent of the Nasdaq, in the second half of 2025.
According to a Korea Herald story from March 24, Bithumb Korea began establishing a non-exchange business to expedite its stock market debut, confirming the IPO rumours.
According to a Decenter story from March 29, Bithumb has reexamined its plans for an initial public offering (IPO) in light of internal concerns raised by former chairman Lee Jeong-hoon’s role in the business.
Bithumb officials claim that reevaluating internal strategy amid a changing institutional landscape was the reason behind the IPO’s postponement rather than legal concerns over Chairman Lee’s position within the firm.
The unexpected move occurred more than 30 days after the Financial Services Commission (FSC) of South Korea suggested a new amendment requiring new leaders of cryptocurrency firms to get regulatory clearance before taking office.
If the modification is approved, the FSC must formally approve the applications of new executives before they may begin employment.
