Bitpanda GmbH, the Vienna-based crypto trading platform backed by billionaire investor and PayPal co-founder Peter Thiel, is reportedly considering a variety of strategic options, including a possible initial public offering (IPO) in Frankfurt.
Based on a Bloomberg report, the corporate is currently in discussions with major financial institutions equivalent to Citigroup Inc. and JPMorgan Chase & Co. regarding these possibilities.
Potential IPO On The Horizon For Bitpanda
Per the report, if Bitpanda proceeds with the potential IPO or any similar transaction, it could possibly be valued at roughly $4 billion or more, as indicated by sources aware of the situation.
The continued deliberations suggest that while an IPO is on the table, the corporate may ultimately select to not pursue any deal. Representatives from Citi and JPMorgan declined to comment, and Bitpanda has not responded to requests for added information.
Founded in 2014, Bitpanda offers a wide selection of trading services, including cryptocurrencies, equity derivatives, and commodities.
The startup was valued at $4.1 billion in August 2021 after successfully raising $263 million from a gaggle of outstanding investors, including Thiel’s Valar Ventures, billionaire financier Alan Howard, and REDO Ventures.
From Losses To Profits
Recent financial reports indicate that Bitpanda anticipates a record profit in 2024. The corporate generated over €100 million (roughly $108 million) in revenue in the course of the first quarter of this 12 months alone.
This marks a big turnaround from the previous 12 months, where it recorded a pre-tax profit of €13.6 million after suffering losses exceeding €130 million in 2022.
Furthermore, in a bid to reinforce its offerings, Bitpanda announced in June that it would offer Deutsche Bank IBANs for clients in Germany, facilitating real-time transfers to and from brokerage accounts. This move is anticipated to streamline transactions and enhance customer experience.
The interest in Bitpanda’s potential IPO comes because the cryptocurrency market is experiencing significant momentum, led by the most important cryptocurrency in the marketplace, which is approaching its record high of $73,700 reached in March 2024.
Overall, cryptocurrencies rallied after US regulators approved spot Bitcoin exchange-traded funds (ETFs), making digital assets increasingly attractive to potential investors, followed by a notable correction period mid-year, and now the broader digital asset ecosystem is bouncing back.
Moreover, speculation surrounding a possible victory by pro-crypto Republican candidate Donald Trump within the upcoming US presidential election has further fueled optimism out there.
Analysts expect that with the Trump approach and guarantees of recent regulation and support for innovation and growth within the ecosystem, Bitcoin could lead on the general market rally expected in the ultimate months of the 12 months, with the potential to succeed in recent all-time highs.
Expectations are high, as evidenced by the remarkable recovery in the general crypto market capitalization chart, which currently stands at $2.3 trillion after losing nearly $200 billion in value at the tip of last week.
Featured image from DALL-E, chart from TradingView.com