Upbit and Bithumb report 50% declines in H1 revenue, reflecting market contraction

Upbit and Bithumb, South Korea's two largest cryptocurrency exchanges, reported significant drops in revenue and profits for the first half of 2026, reflecting a slowdown in local crypto market activity.Upbit parent company Dunamu's consolidated operating revenue for the period fell 49.1% year-over-year to 408.1 billion won ($289 million) from 801.9 billion won ($568 million), according to its filing with the Financial Supervisory Service.Dunamu's operating profit declined 79.7% to 111.5 billion won ($79 million) from 549.1 billion won ($389 million), while net profit decreased 74.1% to 108.4 billion won ($77 million).Meanwhile, Bithumb reported a similar downturn. Its H1 operating revenue dropped 48.7% to 168.8 billion won ($120 million) from 329.2 billion won ($233 million). Operating profit fell 83.4% to 14.9 billion won ($11 million) from 90.1 billion won ($64 million).While Dunamu maintained a net profit, Bithumb swung to a net loss of 108.7 billion won ($77 million) from a net profit of 55 billion won ($39 million) a year ago. Virtually all of Bithumb's revenue came from platform trading fees.Crypto winterThe prolonged crypto market downturn is attributable to the underperformance of major digital assets and reduced market liquidity. Bitcoin (BTC) fell more than 30% in the first half of this year, dropping to around $60,000 from roughly $90,000 at the beginning of 2026. Ethereum (ETH) performed worse, entering the year at $3,000 and finishing the period at around $1,600.The period was also marked by several negative developments for the crypto sector, including delays to the Clarity Act, Strategy's sale of its bitcoin holdings, and substantial outflows from U.S. crypto exchange-traded funds."The recent decline in performance is attributed to a contraction in liquidity across the global digital asset market, which has led to a weakening of investor sentiment," Dunamu wrote in its press release.Investor capital in South Korea largely shifted toward domestic equities, with the benchmark KOSPI more than doubling in the first half of 2026. The rally was primarily driven by a surge in semiconductor stocks, led by Samsung Electronics and SK Hynix amid strong global demand for AI-related memory chips. This also drained capital away from the local crypto market.Five fully-licensed domestic exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — saw their combined second-quarter trading volume drop 49.5% year-over-year to $146.43 billion, local news outlet Bitwatch reported, citing Coingecko data." target="_blank">The BlockRealignment phaseDespite the sharp contraction in trading activity, both exchanges have been actively reshaping their ownership structures and strategic positioning.Dunamu is currently processing a comprehensive share-swap with Naver Financial that would make it a wholly owned subsidiary of the fintech arm of South Korea's dominant internet company. Once closed, the combined entity plans to aim for a public listing — potentially on Nasdaq — within five years.In parallel, major traditional financial and industrial groups took substantial stakes in Dunamu this year. Hana Financial Group acquired a 6.55% holding for about 1 trillion won ($708 million) and signed a memorandum of understanding for won-backed stablecoins, blockchain-based remittances and broader digital asset services. Three Samsung affiliates followed with a combined 4% stake for roughly 613 billion won ($434 million).Bithumb, on the other hand, is preparing for an IPO targeted for 2028 after earlier timelines slipped. Its multi-year roadmap calls for upgrading internal controls in 2026 and submitting a preliminary listing review in 2027.In June 2026, Kiwoom Securities entered talks to acquire a stake in the platform through a third-party allotment of newly issued shares, while in May, Bithumb signed a partnership with SSI Digital to expand to Vietnam.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.