Crypto Exchange Hashkey’s Shares Flat In Hong Kong Trading Debut

Hashkey Holdings, operator of Hong Kong’s largest licensed crypto exchange, saw its shares drop 0.15% in its stock market debut in the city on Wednesday, giving the company a market cap of HK$18.4 billion ($2.4 billion).

Hashkey’s stock rose to a high of HK$7.12 in the early trading session, before closing at HK$6.67. The Hong Kong-based company raised HK$1.6 billion from the sale of nearly 240.6 million shares at HK$6.68 apiece, near the top end of a marketed range of HK$5.95 to HK$6.95.

Hashkey said it will use the proceeds to upgrade its technology and infrastructure, hire talent and strengthen risk management.

Established in 2018, Hashkey is among the earliest of Hong Kong’s 11 companies cleared to offer regulated crypto trading services for retail and institutional investors. The company said in the prospectus it has more than 75% of Hong Kong’s digital asset trading volume, citing research firm Frost & Sullivan. Hashkey, which also offers trading services in Singapore, the United Arab Emirates and Bermuda, added that it has processed HK$1.3 trillion in cumulative spot trading volume as of September. It has also received regulatory approval in Japan and Ireland, though crypto trading services have yet to begin.

The company also manages HK$7.8 billion worth of digital asset funds across venture capital and secondary markets, while offering other blockchain-related services such as tokenization—the process of creating digital tokens that represent real-world assets like bonds and real estate.

Hashkey’s first-half revenue dropped 26% year-on-year to HK$284 million, with 68% of it coming from trading services, followed by blockchain-related services and asset management services. The company attributed the revenue decline mainly to less trading volume, which dropped 38% year-on-year to HK$214 billion in the first six months. During the same period, its net loss narrowed to HK$506.7 million from HK$772.6 million due to reduced administrative expenses. As of June, Hashkey has 1.4 million registered customers, three times more than the same period a year earlier.

Its IPO comes as investor sentiment in cryptocurrency has cooled in recent months. Bitcoin, after notching its best year, has entered a sharp correction, plummeting more than 30% from its October’s peak of roughly $126,000 amid a broader retreat from riskier assets.

Hashkey was set up in 2018 by Xiao Feng, vice chairman of China’s auto parts-to-energy conglomerate Wanxiang Group, who also leads the Hangzhou-based company’s blockchain arm. Hashkey’s largest shareholder is Lu Weiding, the billionaire chairman and CEO of Wanxiang. Lu owns nearly 40% of Hashkey and sits on its board.

Wanxiang is one of China’s earliest investors of ether, the world’s second-largest cryptocurrency after bitcoin. The creator of the ether, Vitalik Buterin, said in a 2024 interview with crypto news outlet Wu Blockchain that Wanxiang bought 410,000 ether at $1.2 per token in 2015. One ether is now worth more than $2,900.

Hashkey’s most recent funding round was completed in August, when it raised $343.7 million in a Series A at a $1.65 billion valuation. Its pre-IPO investors include Gaorong Ventures, an early backer of China’s discount e-commerce giant PDD Holdings; Meitu Investment, the investment arm of Chinese billionaire Cai Wensheng’s beauty app operator Meitu; Chinese crypto entrepreneur Star Xu’s OKG Ventures; as well as Fidelity International and CMB International Capital, the investment banking arm of China Merchants Bank.

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