After a
record-breaking 2021, one of Europe’s oldest cryptocurrency exchanges
experienced two consecutive years of significant unprofitability. The British
branch of Luxembourg-based Bitstamp recently published its 2023 results,
showing a revenue decline to just under €8 million and a net loss of €19.7
million.
Bitstamp
Limited, registered in the UK, emphasized in its report published this week in
Companies House that the 70% year-over-year revenue drop from €29 million was
“mainly driven by unfavorable market conditions and the reduction in
trading volumes.”
In 2021,
the exchange achieved a record profit of €37 million, responding to Bitcoin ‘s
historic highs. 2022 brought a decline from the peaks and a loss of around €7
million, while the past year saw this loss triple to nearly €20 million.
Nevertheless,
Bitstamp remains among the top 10 largest cryptocurrency exchanges in terms of
spot volumes. According to Finance Magnates Intelligence data, in July
2024, it ranked ninth with a result of almost $8 billion.
It’s worth
noting that the unfavorable impact on results was not only due to lower BTC
prices throughout most of 2023 and reduced retail investor activity but also
internal company movements. Part of Bitstamp Limited’s business was transferred
to three of its subsidiary companies, including Bitstamp UK Limited, Bitstamp
Global Ltd (registered in the British Virgin Islands),…
