Bitkub’s bumpy ride: Thailand’s leading crypto exchange parent company sees sharp revenue decline amid market downturn
Bitkub Online (BO), the parent company of Thailand’s top cryptocurrency exchange Bitkub, experienced a 48% year-on-year drop in revenue last year, attributed to the downturn in the crypto market. Client investments also saw a significant 65% decline compared to the previous year.
The financial statement published on BO’s website revealed a net profit of 341 million baht in 2022, marking an 86% decrease from the prior year. Customer investments totalled 30.5 billion baht, down 65% from 87.2 billion baht in the previous year.
BO’s 2022 revenue stood at 2.85 billion baht, including 2.82 billion in fees and service revenues, a 45% reduction from 2021. In comparison, Bitkub’s revenue in 2021 was 5.51 billion baht, with 5.17 billion originating from fees and service income.
The majority of revenue from fees and services is derived from trading fees, transaction fees, and listing fees. Other income sources include interest income and profits or losses from digital asset sales. Residual fee income in 2022 amounted to 39.7 million baht, a slight decrease from 41.9 million in 2021, as stated in the company’s report.
BO has 81.6 million baht in unearned income from obtaining KUB digital assets through a fee credit exchange event, reported Bangkok Post. These assets can be used as digital asset trading fees at the company’s trading centre within two years from the date of a successful transaction. Customers are also eligible for a bonus as additional fee credit, as per the contract terms.
In 2022, BO’s asset value fell to 32 billion baht, a 64.4% reduction from the previous year, primarily due to a decrease in customer deposits and digital assets, which dropped to 30.5 billion baht at the end of the year.
Licensed by the Securities and Exchange Commission, BO operates the largest cryptocurrency exchange in Thailand. Founded in 2016, the company has a registered capital of 50 million baht and is 99.9% owned by Bitkub Capital Group Holdings.
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