Bithumb swings to a $15.7M quarterly loss

Despite the quarterly loss, Bithumb remained profitable at the operating level. Operating profit reached 12.1 billion won, down roughly 44% from 21.6 billion won a year earlier.

The latest results highlight the pressure facing crypto exchanges as lower trading volumes translate directly into weaker transaction-fee revenue.

Bithumb’s Q2 loss narrowed sharply from Q1

Bithumb's second-quarter performance was significantly better than its first-quarter results.

The exchange reported an 86.9 billion won net loss in Q1 2026, meaning the Q2 deficit narrowed by roughly 75% sequentially.

However, the year-to-date figures remain challenging.

During the first six months of 2026, Bithumb recorded:

• Net loss: 108.7 billion won

• Revenue: 168.8 billion won

• Operating profit: 14.9 billion won

Revenue declined 48.7% from the first half of 2025, while operating profit dropped 83.4%.

The figures show that Bithumb's core exchange operations remained profitable, but the amount generated from those activities fell substantially.

Transaction fees remain Bithumb’s main revenue source

Bithumb continues to rely overwhelmingly on transaction fees.

Local reports put its Q2 transaction-fee revenue at approximately 86.28 billion won, accounting for virtually all of its operating revenue. Other activities, including lending and market-data services, generated only around 3.8 million won.

That concentration makes Bithumb particularly sensitive to changes in cryptocurrency trading volumes.

When traders reduce activity, the exchange processes fewer transactions and collects fewer fees. This can quickly affect revenue and operating profit even when the platform maintains a significant share of South Korea's crypto market.

Bithumb also attributed part of its quarterly net loss to changes in the value of virtual assets held on its balance sheet. Cryptocurrency valuation changes can cause reported net income to diverge significantly from operating performance.

South Korea’s crypto trading activity has weakened

Bithumb's results come amid a broader slowdown in South Korea's cryptocurrency market.

A recent analysis of South Korean crypto trading volumes found that the country's five major exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — processed approximately $366.58 billion during the first half of 2026.

That represented a 54.6% decline compared with the same period in 2025.

Bithumb also lost some market share during July. According to NexBlock data cited in the report, the exchange handled around 4.71 trillion won in trading between July 1 and July 27.

Its share of trading across the five major exchanges fell from 30.7% to 27.1%, while market leader Upbit increased its share from 62.3% to 67.4%.

The shift is significant for Bithumb because transaction fees remain its dominant source of revenue.

Bithumb prepares for a 2028 IPO

The weaker financial performance comes as Bithumb continues preparations for a planned 2028 initial public offering.

The exchange's three-stage IPO roadmap calls for internal-control improvements and preparations for conversion to Korean International Financial Reporting Standards during 2026.

Bithumb expects to complete the required audits and submit a preliminary listing application in 2027.

The company has also signed an advisory agreement with Samjong KPMG running through the end of 2027. Bithumb has indicated that the timetable could still change depending on market conditions and regulatory developments.

Its financial performance will be closely watched as the company moves toward the proposed listing.

Bithumb is also restructuring parts of its business. Bithumb Asset has been spun off as the exchange works to separate responsibilities between business units and strengthen its corporate structure ahead of the IPO.

Kiwoom considers investment in Bithumb

Bithumb's restructuring comes alongside potential investment from South Korean brokerage Kiwoom Securities.

The two companies have discussed an investment involving newly issued Bithumb shares, although the size of the investment and resulting ownership percentage had not been finalized as of late June.

The proposed Kiwoom investment could provide additional capital while Bithumb continues preparing for its eventual public-market debut.

Bithumb has previously been linked to a possible overseas listing, including reports of a potential Nasdaq listing. However, the company's latest 2028 roadmap does not confirm a final exchange or listing venue.

Regulatory challenges remain ahead of the IPO

Bithumb is also working through regulatory and compliance issues as it prepares for a potential public listing.

In June, South Korea's Personal Information Protection Commission imposed a 210 million won penalty after finding that Bithumb had transferred customer information overseas without meeting all required consent and notification obligations.

The regulator's cross-border data ruling required Bithumb to improve its procedures for transferring customer information and provide clearer disclosures in its privacy policy.

The exchange is also facing a much larger anti-money-laundering case.

Authorities previously imposed a 36.8 billion won fine and a six-month restriction covering new customer deposits and withdrawals to external wallets.

In May, the Seoul Administrative Court suspended the restriction while Bithumb challenges the action, allowing the exchange to continue operating without the suspension for now.

Regulators said the case involved approximately 6.65 million instances of inadequate customer identity verification, alongside issues involving transaction monitoring and dealings with unregistered overseas virtual asset providers.

What Bithumb’s results mean for the crypto market

Bithumb's Q2 results illustrate how closely centralized exchanges remain tied to cryptocurrency trading activity.

The exchange remained operationally profitable, but its heavy dependence on transaction fees left it vulnerable to falling market volumes. The 35.8% year-over-year revenue decline demonstrates how quickly weaker trading activity can affect exchange earnings.

The pressure is particularly important as Bithumb prepares for a potential 2028 IPO. Investors and regulators will likely focus not only on revenue growth but also on market share, profitability, internal controls and the resolution of outstanding compliance issues.

For now, Bithumb's second-quarter loss is less severe than its first-quarter deficit, but the exchange still faces a challenging environment as South Korea's crypto trading activity remains below last year's levels.