Bithumb Posts 171x Revenue Gain in 2017
Apr 10, 2018 Posted / 589 Views
As indicated by Coindesk Korea, In 2017 Bithumb raised its income by 171 fold in 2017 as compared to its income in 2016. Bithumb takes an operating fee on every order at 0.15 percent and the fee model stays as the fundamental income stream of the digital currency trade.
In its final quarter in 2017, the trading volume of South Korean digital currency exchanges escalated exponentially because interest for cryptocurrencies like bitcoin and Ethereum also climbed up. Major digital currency platforms were sold at high value and the stock costs of publicly recorded digital currency trades surged.One of the third biggest digital currency exchanging platform in South Korea, Korbit was obtained for $150 million.
Bithumb in 2017 recorded a net profit of $420 million and recorded an income of 330 million. Investors in the market were shocked by the numbers,given that its net income was higher than its revenue, which isn't conceivable much of the time unless the organisation makes considerable income outside of its fundamental revenue model.
Bithumb agent amid an interview with Coindesk Korea expressed that the organisation has made a benefit of $90 million outside of its fundamental business model and its digital currency exchanging platform as non-operating income. Bithumb indicated this may have been produced from office rental, investment profit and interest rates.
Bithumb said “The details of Bithumb’s balance sheet will only be finalized on March 30, in a board meeting. As such, it is difficult to confirm any details of the company’s balance sheet in early April. Bithumb will likely introduce details of its earnings in late April."
Non-operating income often originates from organizations with properties that are being rented to different people or organizations. For instance, if Bithumb has a business building in the core of Seoul and it rents out to different organizations as it only uses a section of it, it can now consider the organization's non-operating income. Thus, it is excluded from income generated from the organization but including in its net income.
It is possible that Bithumb produced its non-operating income from its digital currency investments and it is conceivable that the organisations held funds in digital currencies like bitcoin and Ethereum.
In the event that the non-operating income of Bithumb originated from its bitcoin investment, which is the probability of the case, Bithumb might see a misfortune in 2018, if bitcoin neglects to recuperate past $19,000. The 2017 profit of Bithumb incorporated bitcoin's value spike to $19,000, which hit $24,000 in South Korea because of local premium.
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