London-headquartered crypto exchange, Bitstamp Ltd has disclosed its financials for the year 2020, ending on December 31. The company reported an increase of its total revenue to €54.5 million from the prior year’s €51.1 million. That was a yearly increase of 6.6 percent.
Bitstamp offers cryptocurrency exchange services and lists a total of eleven digital assets against three fiats: pound sterling, euro and US dollar. The list of the cryptos on the exchange includes Bitcoin , Ripple, Litecoin, Ethereum and others.
The exchange earns revenue by levying fees on transactions, deposits and withdrawals. It also charges services fees from its clients and acts as a Ripple Gateway.
As explained in the latest Companies House filing, the 2020 revenue of the company was pushed higher primarily by the significantly higher cryptocurrency trading volume in the last quarter of the year. Additionally, it generated more than €6.1 million from other income sources.
Deducting the cost of sales and administrative expenses, Bitstamp turned a pre-tax profit of over €21.1 million, which is a yearly jump of 257 percent. The net profits came in at €17.24 million.
Focusing on Other Markets
Though based in London, Bitstamp migrated a number of its clients to two other subsidiaries, Bitstamp Europe SA and Bitstamp USA, to comply with the jurisdictional laws. Recently, the US unit of the exchange appointed Robert Zagotta, who worked with rival Kraken for more than three years, as the Chief Executive Officer, Finance Magnates reported.
The cryptocurrency rally started at the end of last year and then continued to zoom higher in 2021. Bitstamp figures do not include the revenue it generated in the first quarter of the ongoing year, which might have earned it a windfall.
Furthermore, the crypto exchange strengthened its balance sheet as it closed the year with total assets of €750.2 million, which is up from the previous year’s €594.3 million.
