HashKey’s Hong Kong IPO gets muted reception as crypto market cools
HashKey Holdings, the operator behind Hong Kong’s largest licensed cryptocurrency exchange, had a subdued debut on the Hong Kong stock exchange on Wednesday, with its shares ending the day almost flat amid a broader downturn in the crypto market.
The company’s stock slipped 0.15% on its first day of trading, giving HashKey a market valuation of about HK$18.4 billion ($2.4 billion). Shares briefly climbed to HK$7.12 in early trading before closing at HK$6.67, just below the IPO price of HK$6.68.
HashKey raised roughly HK$1.6 billion ($207 million) by selling nearly 241 million shares, pricing the offering near the top of its marketed range of HK$5.95 to HK$6.95. The company said it plans to use the fresh capital to upgrade its technology and infrastructure, expand its workforce, and strengthen risk and compliance systems.
Founded in 2018, HashKey is one of 11 firms approved by Hong Kong regulators to provide crypto trading services to both retail and institutional clients. According to its prospectus, the exchange accounts for more than 75% of Hong Kong’s regulated digital asset trading volume, citing data from Frost & Sullivan.
Beyond Hong Kong, HashKey operates in Singapore, the United Arab Emirates, and Bermuda, and has secured regulatory approvals in Japan and Ireland, though trading has yet to launch in those markets. As of September, the company reported cumulative spot trading volume of HK$1.3 trillion.
HashKey also manages around HK$7.8 billion in digital asset funds across venture capital and secondary market strategies. In addition, it offers a range of blockchain services, including tokenization, which involves issuing digital tokens tied to real-world assets such as bonds and property.
Financially, the company has faced recent headwinds. Revenue in the first half of the year fell 26% year-on-year to HK$284 million, largely due to weaker trading activity. Spot trading volume declined 38% to HK$214 billion over the same period. Despite the revenue drop, HashKey managed to narrow its net loss to HK$506.7 million from HK$772.6 million a year earlier, helped by lower administrative costs.
Customer growth has remained strong, however. By June, HashKey reported 1.4 million registered users—three times the number it had a year earlier.
The IPO comes at a challenging moment for the crypto sector. After a strong run earlier in the year, investor enthusiasm has faded. Bitcoin has fallen more than 30% from its October high of around $126,000, sliding to an eight-month low as investors pull back from riskier assets.
HashKey was founded by Xiao Feng, vice chairman of Wanxiang Group, a major Chinese conglomerate with interests spanning auto parts and energy. The company’s largest shareholder is Lu Weiding, billionaire chairman and CEO of Wanxiang, who owns nearly 40% of HashKey and serves on its board.
Wanxiang is known as one of China’s earliest institutional backers of ether, the world’s second-largest cryptocurrency. Ethereum co-founder Vitalik Buterin has previously said the group bought 410,000 ether in 2015 at around $1.20 per token—a stake now worth well over $1 billion at current prices.
Most recently, HashKey raised $343.7 million in an August Series A funding round that valued the company at $1.65 billion. Its roster of pre-IPO investors includes Gaorong Ventures, Meitu Investment, OKG Ventures, Fidelity International, and CMB International Capital.
While HashKey’s public debut didn’t deliver a first-day pop, the listing still marks a milestone for Hong Kong’s regulated crypto market—one that now faces the test of navigating a cooler, more cautious investment climate.
Disclaimer: This article is a rewritten summary. The original reporting was published on Forbes and can be found at https://www.forbes.com/
