The cryptocurrency exchange Bithumb, based in South Korea, has disclosed an operational loss for the fiscal year 2023 of 14.9 billion won (~$11 million). The company has attributed this dip to a notable decrease in income and the introduction of a fee-free policy in the fourth quarter.

The Seoul-based exchange recorded yearly income of 135.8 billion won (~$100.6 million) in 2023, a significant 58% drop from 2022, according to Korean news station News1.

Bithumb's net profit decreased by 75% to 24.3 billion won (~$18 million) in 2023, according to the study, even though the company was profitable for the fourth year in a row. The exchange ascribed the decline in earnings to the difficulties presented by the cryptocurrency winter, which led to a decline in trading activity.

In order to increase trading volume, Bithumb also mentioned the implementation of a fee-free policy in Q4 2023 as a cause in the loss in income. With its decision to eliminate trading costs, the exchange has already seen a spike in market share from 12% in October 2023 to 40% by February of this year, indicating that it is aiming to surpass its primary competitor, Upbit.

Sustaining financial stability is critical for Bithumb, particularly in light of its upcoming intentions to go public on South Korea's KOSDAQ stock exchange in the second half of 2025. Bithumb's intention to pursue an initial public offering (IPO) seems to be motivated by a desire to increase investor confidence in the face of fierce competition in the local market, as crypto.news previously reported.