HTX Crypto Exchange Boasts $98M Profit in Q3 Despite Sector Decline: Projects Positive Outlook
Summary:
Chinese blockchain expert, Justin Sun, announces HTX, a crypto exchange, earned a profit of $98 million in Q3 2023, despite high interest rates leading to a sector-wide decline. He anticipates a Q4 profit of $104 million and believes the cryptocurrency market will recover by Q1 next year. However, HTX faced issues like workforce downsizing and internal disputes over salary reductions earlier this year.
Blockchain aficionado from China, Justin Sun, who is effectively the proprietor of the cryptocurrency exchange HTX (previously known as Huobi Global), announced that the exchange registered earnings of $98 million in the third quarter of 2023. In a Twitter thread dated October 26, Sun stated that HTX's total revenue for the third quarter stood at $202 million, with expenses amounting to $104 million, resulting in a net profit of $98 million. For the fourth quarter of 2023, he anticipates the exchange will bring in $190 million in revenue, incur costs of $88 million, leading to an expected profit of $104 million.
Sun recognized the third quarter as a tough phase for the sector, attributing the industry-level dip in revenue to the elevated interest rates set by the U.S. Federal Reserve. Despite these challenges, he maintains that they managed to sustain their revenue growth. "With the overall market rebounding in the fourth quarter, we hold a positive view. Our revenue forecast remains comparatively cautious," he added.
Looking ahead, Sun is confident that the lowest point of the cryptocurrency bull market is almost past. "The crypto market will welcome a Spring revamp in the fourth quarter of this year and the first quarter of the next. We have strong faith in the continuous enhancement of overall financial indicators," he noted.
However, recent times have not been entirely favorable for HTX. Edward Chen, managing director of HTX Ventures, shared at the Token2049 event in Singapore last month that the exchange had downsized its workforce from 2,500 at the beginning of this year to 900. Earlier in January, the exchange reportedly curbed an internal rebellion after several salaries were reduced and bonuses eliminated due to declining revenues.
Published At
10/26/2023 9:00:00 PM
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