Justin Sun says HTX generated $202 million in Q3 revenue
Justin Sun, the founder of the Tron blockchain protocol, has reported that crypto exchange HTX (formerly known as Huobi Global) scored a profit of $98 million during the third quarter, despite various challenges in the crypto space.
In a social media post, Sun shared that HTX, along with associated companies, generated a total of $202 million in revenue during the three months through September 2023. However, expenses of $104 million were incurred, resulting in a net profit of $98 million for the quarter.
Looking ahead to the fourth quarter, the de facto owner anticipates revenues of $190 million, with expenses of $88 million, resulting in an estimated profit of $104 million.
Sun acknowledged that the third quarter was a challenging period for the digital asset sector, with the Federal Reserve’s high interest rates contributing to a decline in revenues for many crypto exchanges. He was optimistic that the lowest point of the crypto bear market has passed and predicted a “spring recovery” in the crypto market during the fourth quarter and the first quarter of the next year.
“The entire third quarter was a severe quarter for the industry. But we still maintained the growth rate of revenue. The overall market recovered in the fourth quarter. We are optimistic about the fourth quarter. The revenue forecast is still relatively conservative,” he said.
While Justin Sun’s outlook is positive, HTX faced serious issues in recent months, including a security breach in September that led to the theft of $7.9 million in digital assets. Sun claimed that the exchange had fully covered the losses and assured users that their funds were safe. Additionally, the exchange reduced its staff count from 2,500 to 900, citing revenue-related challenges.
“In Q4 this year and Q1 next year, the crypto market will usher in spring recovery. We have firm confidence in the continued improvement of overall financial indicators,” he wrote.
HTX offers a range of trading services, including spot trading, futures contracts, margin and over the counter (OTC) trading, which allows users to buy and sell cryptocurrencies directly with each other.
In addition to trading fees, Huobi also generates revenue from other services, such as Huobi Prime, a platform for initial exchange offerings (IEOs), and Huobi Mining Pool, which allows users to mine cryptocurrencies and earn rewards. Huobi also offers a range of investment products, including cryptocurrency funds and index products, which generate additional revenue for the exchange.