Bithumb has reported a 21.8 billion won, or about $15.7 million, net loss for the second quarter of 2026 as revenue fell 35.8% from a year earlier. Summary Bithumb’s second-quarter revenue fell 35.8% to 86.3 billion won. The exchange swung from a 22 billion won profit to a 21.8 billion won loss. First-half revenue dropped 48.7%, while the net loss reached 108.7 billion won. Lower Korean crypto trading activity has reduced fee income across the domestic market. According to Yonhap News Agency, Bithumb moved into the red during the three months through June after recording a 22 billion won net profit in the same quarter of 2025. Bithumb’s quarterly loss has narrowed from Q1 Although the company’s latest result represented a year-on-year reversal, the second-quarter loss was smaller than the 86.9 billion won deficit reported during the first three months of 2026. The figures show Bithumb remained profitable at the operating level even as asset-related losses pulled its final result below zero. Quarterly revenue reached 86.3 billion won, compared with about 134.4 billion won a year earlier. Operating profit fell 44% over the same period to 12.1 billion won, down from roughly 21.6 billion won. Transaction commissions accounted for almost all of Bithumb’s operating revenue during the quarter. Local reports placed fee income at approximately 86.28 billion won, while revenue from other activities, including lending and market information services, amounted to only about 3.8 million won. Heavy dependence on transaction fees leaves the exchange’s earnings closely tied to customer activity. When trading volume falls, fewer completed trades reduce the commissions collected by the platform, even if Bithumb retains a large share of South Korea’s crypto market. At the same time, Bithumb attributed part of its net loss to changes in the value of its virtual asset holdings. Such valuation changes can cause net income to move differently from operating profit because the company must account for gains or losses on crypto assets held on its balance sheet. First-half figures show a steeper revenue decline Across the first six months of 2026, Bithumb recorded a net loss of 108.7 billion won, reversing a 55 billion won profit from the corresponding period last year. First-half revenue fell 48.7% to 168.8 billion won, while operating profit declined 83.4% to 14.9 billion won. The company therefore remained profitable through its main exchange operations, but the amount earned from those activities dropped sharply as trading weakened. The difference between the quarterly and half-year results also shows how heavily the first quarter weighed on the period. Subtracting the second-quarter figures from the six-month totals indicates that Bithumb generated about 82.5 billion won in first-quarter revenue and only 2.8 billion won in operating profit, alongside the previously disclosed 86.9 billion won net loss. Lower trading across South Korea provides direct context for the revenue decline. A crypto.news report found that Upbit, Bithumb, Coinone, Korbit, and Gopax processed a combined $366.58 billion during the first half, down 54.6% from the same period in 2025. During July 1–27, Bithumb handled approximately 4.71 trillion won in trades, according to NexBlock data cited in the report. Its share of trading among the five exchanges fell from 30.7% to 27.1%, while Upbit’s share increased from 62.3% to 67.4%. The figures matter because Bithumb’s narrow revenue mix gives the exchange limited protection against a decline in spot-market activity. Fee income remains its main source of sales, leaving lower volume to pass quickly into quarterly revenue and operating earnings. Weaker earnings arrive during Bithumb’s IPO work Bithumb’s results have arrived while the company prepares for a public listing targeted for 2028. Its three-stage IPO roadmap calls for internal control improvements and preparation for Korean International Financial Reporting Standards during 2026. Under the schedule disclosed in August, Bithumb expects to submit a preliminary listing application and complete the required audits in 2027. The company has also signed an advisory agreement with Samjong KPMG that runs through the end of that year, although it said the timetable could change with market conditions and the regulatory review. Financial performance will form part of the information reviewed by prospective investors and listing authorities. Bithumb has said it plans to disclose its financial position, management matters, and crypto holdings more regularly as it prepares for the offering. The company is also separating parts of its operations. Bithumb Asset has been spun off to define responsibilities between business units, while domestic and international securities firms, lawyers, and accounting firms are helping assess valuation and legal risks. For U.S. investors, the main connection lies in Bithumb’s previous consideration of an overseas listing. Earlier reports linked the exchange with a possible Nasdaq offering, although its latest 2028 roadmap does not identify a final venue. Until Bithumb chooses a market and completes an offering, American investors do not have a U.S.-listed Bithumb stock through which to gain direct equity exposure. Separately, South Korean brokerage Kiwoom Securities has held talks to acquire newly issued Bithumb shares. The proposed Kiwoom investment remained under negotiation in late June, with the two companies yet to agree on the investment size or ownership percentage. Compliance costs remain part of Bithumb’s preparations Alongside falling revenue, Bithumb has been addressing several regulatory and internal-control matters that could affect its listing work. In June, South Korea’s Personal Information Protection Commission imposed a 210 million won penalty after finding that Bithumb transferred customer information overseas without meeting all consent and notice requirements. The regulator’s cross-border data ruling also required the exchange to revise its transfer procedures and explain them more clearly in its privacy policy. An earlier anti-money laundering case produced a much larger 36.8 billion won fine and a six-month suspension covering new customer deposits and withdrawals to external wallets. In May, the Seoul Administrative Court paused the suspension while Bithumb’s legal challenge proceeds, allowing the exchange to continue operating without the restriction for the time being. Regulators said the AML action involved about 6.65 million cases of inadequate user identity checks, as well as problems involving transaction monitoring and dealings with unregistered overseas virtual asset providers. Bithumb told local media that it would present its position during the remaining proceedings. The exchange has said it will respond to changing market conditions by strengthening its internal operations and improving its services. Its disclosed IPO schedule requires the company to complete internal-control upgrades and K-IFRS conversion preparations during 2026 before audits, and a preliminary listing application is planned for 2027.
