Bitpanda GmbH, a Vienna-based digital asset trading platform backed by billionaire Peter Thiel, is exploring strategic options, including a potential initial public offering (IPO) in Frankfurt. According to sources familiar with the matter, the company is working closely with Citigroup Inc. and JPMorgan Chase & Co. as it evaluates its next steps.

Bitpanda Weighs IPO Options with Citi, JPMorgan Amid Crypto Market Surge

The Austria-based exchange, Bitpanda, established in 2014, is evaluating opportunities for a public listing, capitalizing on the crypto market’s renewed interest. The firm has enlisted Citigroup Inc. and JPMorgan to guide its potential IPO process, which could take place in Frankfurt. 

Additionally, sources suggest that a valuation exceeding $4 billion is possible, with any move likely to happen in 2025. The company is also keeping the option of a possible sale open, while ongoing deliberations mean that plans may change.

The company’s IPO considerations align with positive trends in the digital assets sector, notably the recent approval of spot Bitcoin ETFs in the U.S. There’s also speculation that a Republican-led administration could take a more crypto-friendly stance. Winning Donald Trump odds have recently driven digital asset inflows to $2.2 billion, boosting crypto market optimism. 

Donald Trump’s odds against Kamala Harris have continued to rise, largely fueled by his pro-crypto stance. Current Polymarket data shows Trump leading with 66.1% to Harris’s 34%, just seven days before the U.S. elections.

Positive Financial Results Enhance Appeal

Earlier this year, the company announced a forecast of record profits for 2024, driven by strong performance in the first quarter. The platform generated more than €100 million ($108 million) in revenue during the first three months, reflecting solid demand for its trading services in digital assets, equity derivatives, and commodities. 

Additionally, in 2023, Bitpanda achieved a pre-tax profit of €13.6 million, recovering from the €130 million in losses it faced in 2022. More so, a partnership with Deutsche Bank, enabling real-time transfers for German clients, has further strengthened the company’s market presence. This strategic move has streamlined its brokerage services, making it more appealing to investors as it considers an IPO.

The current market conditions appear favorable for the exchange’s IPO exploration, especially with growing regulatory clarity in the digital asset industry. The collaboration with Citigroup and JPMorgan will guide the company through its next steps. As of now, discussions are ongoing, and Bitpanda may proceed with a public listing or explore a possible sale.

Meanwhile, Circle Internet Financial, the issuer of the USD Coin (USDC) stablecoin, remains committed to its IPO plans. CEO Jeremy Allaire recently reiterated the firm’s determination to go public, despite delays. Circle had initially planned to go public via a SPAC merger in 2022 but now awaits regulatory approval. With a solid financial position, the firm is not seeking new funding, and market observers anticipate a listing in early 2025.

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Filed under: News - @ October 28, 2024 6:27 pm