Bithumb Revenue Soars 35% in First Half of 2025 Despite Profit Decline

• Bithumb Revenue Soars 35% in First Half of 2025

• Bithumb's net Profit plunged 45% reaching $40.3 million, while operating profit dropped 5.7% to $65.9 million.

Bithumb Revenue Soars 35%

Bithumb, one of South Korea's largest cryptocurrency exchanges, posted a solid revenue surge in the first half of 2025, driven by renewed optimism in the digital asset market. According to data from the Financial Supervisory Service's Electronic Disclosure System (DART), the exchange generated approximately $240.8 million in sales during the period. Thus, Bithumb Revenue Soars 35% compared to the same time last year.

Profit Take a Hit

However, profits told a different story. Operating profit dropped 5.7% year-on-year to $65.9 million, while net profit plunged 46.5% to $40.3 million. According to the firm, its profit fell because of increased spending on customer benefits. This is a result of customer-oriented perks Bithumb initiated in 2024. Additionally, the company's holdings of specific crypto assets incurred significant losses, leading to reduced profits.

What boosted Bithumb's profit

The revenue boost came as the broader crypto market enjoyed a bullish start to the year. Bitcoin and other significant digital assets hit fresh all-time highs, with Bitcoin touching $124k, then retracing to $117k as of this writing.

Since the inauguration of Donald Trump, the crypto market sentiment surged as he turned pro-crypto in 2024 before the election.

At the same time, the United States Congress passed the Genius ACT, a primary legislation creating legal clarity. There is also growing speculation that the U.S. Federal Reserve could cut interest rates this year.

The passing of the U.S. stablecoin bill, officially named the Genius Act, was seen as a significant step toward integrating digital assets into the mainstream financial system. This legislation is expected to provide more straightforward guidelines for stablecoin issuers and users, reducing uncertainty in the sector.

For context, Lower borrowing costs typically encourage investment in riskier assets like cryptocurrencies, and the mix of political, legislative, and economic catalysts provided a strong tailwind for trading activity on platforms like Bithumb.

Growing speculation that the U.S. Federal Reserve would cut interest rates this year further fueled investment appetite for risk assets like cryptocurrencies. Historically, lower rates tend to weaken the appeal of savings accounts and bonds, pushing investors toward more volatile markets.

A Double-Edged Sword for Crypto Exchanges

For exchanges like Bithumb, a bullish market typically means higher trading volumes and more transaction fees, the primary driver behind the 35% revenue increase. However, competition in the South Korean crypto sector is fierce, and exchanges are increasingly offering loyalty perks, trading fee discounts, and reward programs to attract and retain customers.

While these strategies can boost user growth, they also put pressure on short-term profitability, as Bithumb's results clearly show. The balance between market expansion and cost control will be critical for the exchange in the coming quarters.

What's the way ahead

Looking ahead, if the U.S. FED implements interest rate cuts in September as expected and continues to pass favourable crypto regulations, trading activity is likely to remain elevated throughout 2025.

However, with competition in the Korean crypto market intensifying and the unpredictable nature of cryptocurrency valuations, exchanges like Bithumb may continue to face the challenge of turning trading booms into sustainable profit growth.

For now, Bithumb's first-half performance reflects the realities of the current crypto exchange business model. In the same line, soaring revenues during bull markets, but thin margins due to operational and competitive pressures.