Bitpanda GmbH, the Vienna-based crypto trading platform backed by billionaire investor and PayPal co-founder Peter Thiel, is reportedly considering a range of strategic options, including a potential initial public offering (IPO) in Frankfurt.
According to a Bloomberg report, the company is currently in discussions with major financial institutions such as Citigroup Inc. and JPMorgan Chase & Co. regarding these possibilities.
Potential IPO On The Horizon For Bitpanda
Per the postponementif Bitpanda proceeds with the potential IPO or any similar transaction, it could be valued at approximately $4 billion or more, as indicated by sources familiar with the situation.
The ongoing deliberations suggest that while an IPO is on the table, the company may ultimately choose not to pursue any deal. Representatives from Citi and JPMorgan declined to comment, and Bitpanda has not responded to requests for additional information.
Founded in 2014, Bitpanda offers a wide array of trading servicesincluding cryptocurrencies, equity derivatives, and commodities.
The startup was valued at $4.1 billion in August 2021 after successfully raising $263 million from a group of prominent 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 company generated over €100 million (approximately $108 million) in income during the first quarter of this year alone.
This marks a significant turnaround from the previous year, where it recorded a pre-tax profit of €13.6 million after suffering losses exceeding €130 million in 2022.
Moreover, in a bid to enhance its offerings, Bitpanda announced in June that it would provide Deutsche Bank IBANs for clients in Germany, facilitating real-time transfers to and from brokerage accounts. This move is expected to streamline transactions and enhance customer experience.
The interest in Bitpanda's potential IPO comes as the cryptocurrency market is experiencing significant momentum, led by the largest cryptocurrency on the market, 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.
Furthermore, speculation surrounding a possible victory by pro-crypto Republican candidate Donald Trump in the upcoming US presidential election has further fueled optimism in the market.
Analysts expect that with the Trump approach and promises of new regulation and support for innovation and growth in the ecosystem, Bitcoin could lead the overall market rally expected in the final months of the year, with the potential to reach new all-time highs.
Expectations are high, as evidenced by the remarkable recovery in the overall crypto market capitalization chart, which currently stands at $2.3 trillion after losing nearly $200 billion in value at the end of last week.
Featured image from DALL-E, chart from TradingView.com
