South Korean exchange Bithumb reported a net loss of 21.8 billion won, or approximately $15.7 million, in the second quarter of 2026. This figure marks a sharp reversal from its performance a year ago, when Bithumb still managed to record a profit of 22 billion won in the second quarter of 2025. This slump in its cash books highlights the vulnerability of its revenue structure amid a cooling crypto market.
The only silver lining in this financial report is that the rate of the deficit has begun to slow. The 21.8 billion won loss in the second quarter was lower than Bithumb’s performance in the first quarter of 2026, when the exchange posted a deeper loss of 86.9 billion won. Nevertheless, other business indicators remained in the red. Revenue fell 35.8% to 86.3 billion won, shrinking significantly from last year’s 134.4 billion won. Operating profit also dragged down by 44% to 12.1 billion won from 21.6 billion won.
A Single Revenue Pillar
Bithumb’s weakness is clearly evident in the source of its income. Almost all incoming funds depend on a single source: transaction fees. Out of the total second-quarter revenue, 86.28 billion won was generated purely from retail trading commissions. Other income sources were virtually negligible, contributing a mere 3.8 million won.
This reliance proved fatal as South Korea’s crypto market volume dried up drastically by 54.6% in the first half of 2026. Bithumb posted a first-half net loss of 108.7 billion won, whereas a year earlier they generated a profit of 55 billion won. Total first-half revenue evaporated by 48.7% to 168.8 billion won, accompanied by a sharp 83.4% decline in operating profit.
With the combined transaction volume of the five exchanges shrinking, Bithumb’s market share was also eroded by competitors. In July, its share fell from 30.7% to 27.1%. Meanwhile, Upbit seized the momentum, strengthening its position to control 67.4% of the trading volume in South Korea.
Legal Burdens Ahead of IPO Plans
Amid this financial pressure, Bithumb is working toward its target of listing on the stock exchange through an IPO in 2028. The company has signed a collaboration agreement with the firm Samjong KPMG for initial preparations toward public company status.
However, Bithumb’s path to the stock exchange is hindered by its past legal record. Bithumb is still facing trial over weaknesses in its anti-money laundering system, which previously resulted in a 36.8 billion won fine. In addition to that case, local regulators also imposed a fine of 210 million won over findings of customer data transfer abroad without full user consent.
This quarter’s loss report serves as an early warning sign. Relying entirely on retail commission volume, combined with an unresolved legal track record, means Bithumb’s IPO plans will require more than just signing an advisory contract. The options are clear: build a new, more stable business model, or watch its remaining market share be swallowed up by Upbit.
As reported by crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.