South Korean crypto exchange Bithumb reported a steep drop in profitability for the first quarter of 2026, citing global economic uncertainty and a prolonged slowdown in the digital asset market.
The company announced revenue of 82.5 billion won for Q1, down 57.6% year-over-year, while operating profit fell 95.8% to 2.9 billion won. Bithumb also swung to a net loss of 86.9 billion won, compared to a net profit of 33 billion won during the same period last year.
Weak investment and lower trading volume
According to Bithumb, ongoing geopolitical tensions in the Middle East, rising interest rate pressures, and significant decline in virtual asset trading volume has weakened investor confidence.
The exchange also pointed to significant non-operating expenses, including impairment losses on crypto assets and costs related to administrative sanctions imposed by regulators, as major factors behind the net loss.
“The company was hit by a combination of global economic uncertainty and a slump in the virtual asset market,” Bithumb said in its statement.
Regulatory costs add pressure
Beyond weaker market activity, Bithumb noted that regulatory-related expenses weighed heavily on earnings. The exchange said impairment charges on digital assets and expenses tied to administrative penalties significantly impacted profitability during the quarter.
The results highlight the continued pressure facing centralized crypto exchanges as trading activity remains subdued across global markets.
In spite of weaker earnings, Bithumb has continued pushing its international expansion strategy. Earlier this month, the exchange partnered with SSID to develop a regulated virtual asset trading platform in Vietnam.
The partnership positions Bithumb in the race for one of just five pilot licenses under Vietnam’s upcoming crypto regulatory framework, reflecting growing competition among exchanges seeking access to emerging Asian digital asset markets.
Optimistic future outlook
Despite weaker trading activity across the crypto sector, some analysts remain optimistic about major industry players. Investment firm Benchmark recently raised its price target for Coinbase shares to $270 following the company’s softer-than-expected Q1 results.
Despite the weak quarter, Bithumb said it plans to strengthen its core business and improve service competitiveness in preparation for a potential market recovery.
“To prepare for a market rebound, we will strengthen our fundamentals while enhancing our service competitiveness to establish a foundation for sustainable growth,” a Bithumb representative said.
The earnings report comes as crypto firms continue navigating weaker retail participation, tighter macroeconomic conditions, and increasing regulatory scrutiny across global digital asset markets.
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