Upbit parent firm triples dividends after 85% profit surge, citing Bitcoin halving and Trump effect

Upbit’s parent company, Dunamu, announced it will triple cash dividends to its shareholders following an 85% surge in profit in 2024.

Dunamu confirmed at the shareholders’ meeting that it would approve the financial statement for last year and also announced a major dividend increase per common share.

Shareholders will receive 8,777 Korean won ($5.99) per share, well ahead of last year’s 2,937 won ($2). The total amount to be paid out in dividends is nearly 300 billion won ($204.5 million) as part of the company’s “distribution of retained earnings.”

The move indicates the firm’s confidence in a strong financial outlook following the year-over-year increase. Upbit’s parent company experienced an 85.1% increase in operating profit in 2024, reaching 1.18 trillion won ($809 million). Its net profit also rose by 22.2%, totalling 983.8 billion won ($671 million).

Bitcoin halving and Trump’s pro-crypto stance are gaining momentum

In an official statement, Dunamu linked its remarkable profit growth with factors such as the Bitcoin halving and favourable investment sentiment.

The firm noted that global liquidity expansion following pro-crypto Donald Trump’s election as U.S. President and expectations of U.S. interest rate cuts appear to have had a “big influence” on its strong performance.

Historically, Bitcoin halvings—which reduce mining rewards and create a supply shock—have triggered bullish price movements across the crypto market. This growth often attracts traders looking to capitalize on price rallies and profit from high trading volumes.

Dunamu was well-positioned to benefit from this surge in market activity. The firm also pointed to the growing demand for digital assets in South Korea as a key factor in its success.

Upbit thrives amid regulatory scrutiny, surpassing $101B in monthly trading volume

Upbit retains dominant status in South Korea’s crypto scene amid increasing regulatory scrutiny. In February 2024, the volume on the exchange reached $101 billion, establishing its position as a leading global exchange. Its breakneck growth has put it above the pack and generated significant investor interest in the face of scrutiny.

Regulators have expressed concern over Upbit’s management of anonymous foreign transactions, alleging it may have violated Know-Your-Customer (KYC) compliance rules. This has led South Korea’s Financial Intelligence Unit (FIU) to urge tighter regulations, advising ongoing scrutiny of new customers as well as tracking their deposits and withdrawals of outside cryptocurrencies over the first three months.

However, Upbit has recently received a temporary legal reprieve. According to its parent firm, Dunamu, a Seoul circuit court ruled an injunction that would block the regulatory penalty for 30 days. This legal battle emerges as South Korean regulators are clamping down on enforcement and compliance measures across the crypto sector.