South Korea’s cryptocurrency exchange, Bithumb, disclosed an operating loss of 14.9 billion won (~$11 million) for the fiscal year 2023. The decline was attributed to a significant drop in revenue and the implementation of a fee-free policy in the fourth quarter.

Based on a report from Korean news outlet News1, Bithumb reported an annual revenue of 135.8 billion won (~$100.6 million) in 2023, indicating a notable 58% decrease compared to the previous year.

Even though Bithumb managed to maintain profitability for the fourth consecutive year, the net profit also decreased by 75% to 24.3 billion won (~$18 million) compared to 2022. The exchange pointed out the challenges faced during the crypto winter, leading to reduced trading volumes as a reason for the revenue decrease.

Furthermore, the introduction of a fee-free policy in Q4 2023 aimed at boosting trading volumes was another factor contributing to the revenue decline. Bithumb made this decision to try to outperform its main competitor, Upbit, leading to a notable increase in market share from 12% in October 2023 to 40% by February the following year.

With plans to go public in the second half of 2025 on South Korea’s KOSDAQ stock exchange, Bithumb places great importance on maintaining financial stability. The decision to pursue an initial public offering (IPO) is likely driven by a desire to increase investor confidence amidst fierce competition in the local market.