HashKey Holdings’ Hong Kong debut met a cautious reception, as investors questioned whether the city’s largest licensed crypto exchange can turn regulatory dominance and growing volumes into sustainable profits.
Shares opened below the IPO price and dropped about 5% to roughly HK$6.34 in mid-morning trading before recovering to close at HK$6.67, just 0.15% under the offer price. The early weakness followed prospectus disclosures earlier this month that highlighted substantial losses alongside rapid growth in users and trading activity.
The broader market backdrop added pressure. Bitcoin has retreated from its all-time highs earlier this year, trading near $87,000, which has weighed on valuations for crypto-linked stocks globally.
HashKey commands an estimated three-quarters of Hong Kong’s licensed crypto trading market and processed over $81.8 billion (HK$638 billion) in 2024, according to its prospectus. Yet its ultra-low fee model—largely under 0.1%—has limited revenue growth while operating costs for licensing, custody, compliance, and infrastructure remain high. Between 2022 and mid-2025, the exchange reported cumulative net losses of around $385 million (HK$3.0 billion), with cash burn continuing at an elevated level.
Investors appear to be weighing whether scale alone can close that gap or if higher fees and expanded higher-margin services will be necessary.
The muted debut also reflects a narrower growth story. HashKey has withdrawn from offshore retail markets, closing its Bermuda-registered entity, and is now increasingly reliant on Hong Kong’s regulatory framework. Its future performance is therefore more closely tied to local policy, institutional adoption, and domestic capital market activity than global crypto trends.
HashKey competes with Bullish, the parent company of CoinDesk.
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