Upbit and Bithumb Profits Collapse as Korean Crypto Trading Activity Slumps

Summary

• Upbit and Bithumb recorded major earnings declines as weaker cryptocurrency trading activity reduced revenues across South Korea’s digital asset market.
• Bitcoin and Ethereum losses weakened investor sentiment, while rising Korean equities attracted capital away from cryptocurrency exchanges during the first half.
• Dunamu pursued partnerships and a potential Nasdaq listing, while Bithumb advanced restructuring efforts and plans for its targeted 2028 IPO.

 

South Korea’s two largest cryptocurrency exchanges, Upbit and Bithumb, recorded major earnings declines during the first half of 2026. Upbit parent Dunamu reported operating revenue of 408.1 billion won, down 49.1% from 801.9 billion won a year earlier.

Additionally, operating profit declined 79.7% to 111.5 billion won, while net profit dropped 74.1% to 108.4 billion won. Bithumb experienced similar pressure, with operating revenue falling 48.7% to 168.8 billion won from 329.2 billion won previously.

Its operating profit decreased by 83.4% to 14.9 billion won, compared with 90.1 billion won during the previous year. However, Bithumb recorded a 108.7 billion won net loss, reversing its 55 billion won profit from last year.

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Falling Crypto Prices Weigh on Exchange Trading Revenue

Weaker cryptocurrency prices and reduced market liquidity contributed significantly to lower trading activity across South Korea’s digital asset sector. Bitcoin lost more than 30% during the first half, falling from approximately $90,000 to around $60,000.

Ethereum performed worse, declining from roughly $3,000 at the beginning of 2026 to approximately $1,600 by midyear. Consequently, declining cryptocurrency valuations weakened investor sentiment and reduced trading activity, directly affecting fee-dependent exchange revenues.

Meanwhile, South Korean investors increasingly moved capital toward domestic equities as the benchmark KOSPI delivered substantial gains. Semiconductor companies Samsung Electronics and SK Hynix attracted significant investment amid stronger global demand for artificial intelligence memory chips.

Moreover, Upbit, Bithumb, Coinone, Korbit, and Gopax recorded a combined second-quarter trading volume of $146.43 billion. That represented a 49.5% year-over-year decline, based on CoinGecko data cited by South Korean outlet Bitwatch.

Upbit and Bithumb Reshape Their Corporate Strategies

Despite weaker earnings, both exchanges are pursuing major ownership changes and longer-term strategies designed to strengthen their market positions. Dunamu is processing a share swap with Naver Financial that would make it a wholly owned subsidiary.

The combined company plans to pursue a public listing within five years, with Nasdaq considered a potential destination. Additionally, Hana Financial Group acquired a 6.55% stake in Dunamu, while three Samsung affiliates purchased a combined 4% holding.

Bithumb is pursuing a separate strategy while preparing for an initial public offering targeted for 2028. Its roadmap includes strengthening internal controls before submitting a preliminary listing review in 2027.

Furthermore, Kiwoom Securities entered into discussions to acquire a Bithumb stake through newly issued shares in June. Bithumb also partnered with SSI Digital as part of its strategy to expand into Vietnam. The earnings contraction shows how weaker cryptocurrency trading has affected South Korea’s dominant exchanges despite their broader corporate expansion plans.

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