Crypto Exchange Bitpanda Eyes IPO But There’s a Catch

Bitpanda GmbH, a Vienna-based crypto trading platform backed by prominent investors, is reportedly weighing a range of strategic moves. These include the possibility of an initial public offering (IPO) in Frankfurt. According to sources familiar with the discussions, the company has engaged banking giants Citigroup Inc. and JPMorgan Chase & Co. to assess its options. However, a full sale of the crypto exchange also remains under consideration as an alternative, sources revealed.

Bitpanda Weighs In Several Options

If the company opts for an IPO or other deal, a transaction could push Bitpanda’s valuation to around $4 billion, according to one insider, who requested anonymity due to the private nature of the information. The timeline for any potential move appears set for 2025, with plans still in the preliminary stages.

Moreover, insiders emphasize that no final decisions have been made, and Bitpanda could still choose to maintain its current business structure. Meanwhile, representatives from Citigroup and JPMorgan declined to comment, while Bitpanda has not yet responded to inquiries, according to a Bloomberg report.

This year’s rally in the crypto market, partly fueled by regulatory developments in the U.S., has increased investor interest in digital asset platforms like Bitpanda. The approval of spot Bitcoin exchange-traded funds (ETFs) by U.S. regulators has sparked renewed market optimism. In addition, industry players have noted the added boost from Republican candidate Donald Trump’s pro-crypto stance as he campaigns for the 2024 presidential election.

Overview of Performance Since Launch in 2014

Established in 2014, Bitpanda has now positioned itself as a leading trading platform in Europe, offering services that include crypto trading, equity derivatives, and commodities trading. The company reached a $4.1 billion valuation in August 2021 following a $263 million funding round supported by high-profile backers such as Peter Thiel, Valar Ventures, billionaire Alan Howard, and REDO Ventures.

Moreover, Bitpanda’s latest performance indicates a strong financial rebound. The crypto exchange reported over €100 million ($108 million) in revenue for the first quarter of 2024 and a €13.6 million ($14.71 million) pre-tax profit in 2023, following a challenging 2022.

Also, it’s important to note that in a recent move aimed at strengthening its offerings in Germany, Bitpanda announced the integration of Deutsche Bank IBANs. This move allows its clients real-time access to fund transfers to and from brokerage accounts.

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