[Apha Biz=(Chicago) Reporter Paul Lee] Bithumb Korea, the operator of South Korea's virtual asset exchange Bithumb, posted a year-on-year decline in market trading following the U.S. Federal Reserve's key interest rate hike.
According to the Financial Supervisory Service's electronic disclosure system on the 14th, Bithumb recorded operating profit (sales) of 31.99 billion won, operating loss of 3.44 billion won, and net loss of 8.58 billion won in the second quarter of this year, respectively.
According to a quarterly report released by Bithumb Korea, Bithumb's sales in the second quarter of this year fell 60% year-on-year to 79.96 billion won.
In terms of operating profit, the company posted an operating profit of 38.42 billion won in the second quarter of last year, but turned into a deficit with an operating loss of 3.44 billion won in the second quarter of this year.
However, in terms of net loss during the term, the deficit decreased. Net loss in the second quarter of this year was 8.58 billion won, a sharp drop from the net loss in the second quarter of last year (43.3 billion won).
Bithumb's sluggish report was attributed to the contraction of the market's investor sentiment as Bitcoin's upward rally, which took place during the first quarter, entered an adjustment phase as it entered the second quarter.
The main revenue model for virtual asset exchanges is cryptocurrency trading brokerage fees. In the case of Bithumb, 0.04% to 0.25% of investors' cryptocurrency transactions are taken as selling and buying fees, but the company's profits increase as investors' trading volume increases due to the rise in cryptocurrency prices.
On the other hand, sales (KRW 82.73 billion), operating profit (KRW 12.76 billion), and net profit (KRW 32.29 billion) were all in the black thanks to positive performance in the first quarter.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
