South Korea’s second-largest exchange posted a 21.8 billion won ($15.7 million) net loss in the April-to-June quarter, with the Bithumb Q2 revenue decline registering at 35.8% year-on-year as fee compression and crypto-asset valuation losses eroded a still-positive operating base.
Fee income collapses as spot volumes drain from Korean markets
Quarterly revenue came in at 86.3 billion won, down from approximately 134.4 billion won in the same period of 2025, reversing a 22 billion won net profit from that quarter into the current loss. Transaction commissions drove nearly all of the revenue: fee income reached approximately 86.28 billion won, while lending and market-information services contributed only about 3.8 million won.
Operating profit fell 44% to 12.1 billion won. The prior-year Q2 operating profit figure is cited as roughly 21.6 billion won in the source reporting; CryptoRank puts the same prior-year figure at 21.5 billion won. The article uses the 21.6 billion won figure from the primary reporting, noting the one-hundred-million-won discrepancy.
The Q2 loss was an improvement on the first quarter. Subtracting the second-quarter figures from the six-month totals implies Bithumb generated approximately 82.5 billion won in Q1 revenue and only about 2.8 billion won in Q1 operating profit, alongside the already-disclosed 86.9 billion won Q1 net loss.
For the full first half, Bithumb recorded a net loss of 108.7 billion won, against a 55 billion won profit in H1 2025. Revenue fell 48.7% to 168.8 billion won; operating profit dropped 83.4% to 14.9 billion won.
The sector-wide context is bleak. According to Crowdfund Insider, Dunamu, the operator of Upbit, reported H1 2026 consolidated revenue of 408.1 billion won (approximately $289 million), a 49.1% year-on-year decline, with operating profit down nearly 80%. The five licensed Korean exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax, processed a combined $366.58 billion in H1 volume, a 54.6% drop from H1 2025.
Bithumb’s market-share position also slipped. NexBlock data cited in the snippet shows the exchange handled approximately 4.71 trillion won in trades during 1-27 July, with its share of five-exchange volume falling from 30.7% to 27.1% while Upbit’s share rose from 62.3% to 67.4%.
Bithumb Q2 revenue decline arrives at an awkward moment for IPO preparation
The results land as Bithumb formalises what Blockhead describes as the exchange’s third formal listing timeline, targeting 2028 after earlier pushbacks from a 2025 target. The current roadmap involves converting financial reporting from K-GAAP to K-IFRS, building a risk-management framework, and strengthening internal compliance throughout 2026, per crypto.news.
A preliminary listing review application to the Korea Exchange is planned for 2027. CoinDesk reports the exchange previously weighed a Nasdaq listing before pivoting to a domestic-first approach; BeInCrypto reporting indicates Bithumb’s preference is for the Kosdaq board, with Kospi remaining an option if conditions warrant.
CFO Jeong Sang-gyun stated at the annual shareholder meeting that the exchange was ‘strengthen[ing] accounting policies and internal controls’ following the advisory contract with Samjong KPMG. A Bithumb official also told Maeil Business News Korea that the firm would ‘focus on preparing for the listing until 2027,’ language that leaves the door open to a further slip past 2028.
Kiwoom Securities has held talks to acquire newly issued Bithumb shares, though as of late June the two sides had not agreed on size or ownership percentage.
Regulatory penalties add to cost base
Beyond the revenue pressure, two regulatory actions are running in parallel. South Korea’s Personal Information Protection Commission imposed a 210 million won (approximately $135,700) penalty on 24 June 2026 after finding Bithumb transferred customer data overseas without meeting consent and notice requirements, according to the Korea Herald.
The larger outstanding matter is a 36.8 billion won AML fine and a six-month suspension covering new customer deposits and withdrawals to external wallets, stemming from approximately 6.65 million alleged cases of inadequate identity checks and failures in transaction monitoring. The Seoul Administrative Court paused that suspension in May while Bithumb’s legal challenge proceeds.
With Q3 volume data from NexBlock already pointing to continued share erosion, investors watching the IPO roadmap will want to see whether operating profit can hold through the second half, or whether a third consecutive quarterly loss forces another timeline revision before the 2027 Korea Exchange filing window opens.
