Bithumb net jumps in first quarter on frenetic trading of coins

Bitcoin prices are displayed on a digital screen operated by the Bithumb cryptocurrency exchange, on Tuesday. [YONHAP]

Bithumb Korea, the operator of the Bithumb crypto exchange, posted a 222.6 billion won ($197.6 million) net profit in the first quarter, up 876 percent year on year, according to a disclosure by a major shareholder.

Sales were 250.2 billion won in the first quarter, up 458 percent on year.

In the first quarter of 2020, Bithumb Korea’s revenue was 44.8 billion won and its net income was 22.8 billion won.

Vidente released the figures in a corporate filing Monday. It owns 10.25 of Bithumb Korea and 34.2 percent of Bithumb Holdings, which owns 74 percent of Bithumb Korea.

For full-year 2020, Bithumb Korea’s net income was 127.5 billion won.

The exchange’s strong showing in the first quarter of 2021 came as Korean investors rushed into crypto investments as a rally in stocks paused.

This year, daily trading volume at local cryptocurrency exchanges broke the 20-trillion-won mark, greater than the trading volume of all Kospi-listed stocks.

As exchanges profit from trading, the frenetic activity has led to strong results.

The volume has also led to problems, as Bithumb has suspended and delayed trading a number of times in recent days. The exchange will be shutting temporarily on Friday for system upgrades and improvements.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]