Crypto exchange HTX (formerly Huobi Global), owned by Chinese blockchain personality Justin Sun, has posted a profit of $98 million in Q3 of this year. As per a thread posted on social media platform X (formerly Twitter), Sun claimed HTX and related companies generated a total of $202 million in revenues during the quarter. However, $104 million in expenses cut the figure, leaving a net profit of $98 million.
The crypto veteran stated that HTX maintained its revenue growth rate despite the tough market conditions in the third quarter, including the impact of the high-interest rates set by the United States Federal Reserve. Looking ahead to the fourth quarter, Sun expects revenue of $190 million and expenses of $88 million, forecasting a projected profit of $104 million.
Sun is optimistic that the cryptocurrency bull market’s decline is nearly at its end in the near future. He believes that the crypto market will start to recover and improve in the Q4 of this year and the Q3 of the next year. Sun expressed firm confidence that the overall financial performance would improve.
“The entire third quarter was a severe quarter for the industry. The overall market recovered in the fourth quarter. We are optimistic about the fourth quarter. The revenue forecast is still relatively conservative.”
— H.E. Justin Sun 孙宇晨 (@justinsuntron) October 26, 2023
HTX Experiences Operational Challenges
The platform has been facing operational issues in recent months. At the Token2049 event in Singapore, Edward Chen, the managing director of HTX Ventures, disclosed that the exchange had cut its workforce from 2,500 at the beginning of the year to 900 due to declining revenues.
Moreover, in late September, HTX faced a security breach that resulted in the loss of $8 million worth of crypto assets. The breach included the withdrawal of 5,000 ETH from one of HTX’s active wallets. After the hack, the exchange identified the hackers and successfully recovered the lost funds earlier this month.
In addition, the exchange has been added to the FCA’s warning list, which includes some crypto firms classified as “unauthorized firms” that individuals “should avoid.” To get off the list, the exchange must either register with the FCA or secure a temporary status permit that enables it to conduct legal operations within the country.