HashKey Exchange Shares Fall 5% in Hong Kong Trading Debut After $206 Million IPO

TLDR

• HashKey Holdings’ shares dropped about 5% on their first trading day in Hong Kong after raising $206 million in their IPO
• The company controls roughly three-quarters of Hong Kong’s licensed crypto trading market and processed over $81.8 billion in volume in 2024
• HashKey reported cumulative net losses of about $385 million between 2022 and mid-2025 due to its ultra-low fee strategy below 0.1%
• The IPO attracted nine cornerstone investors including UBS Asset Management Singapore, Fidelity, and CDH
• The weak debut comes as Bitcoin trades around $87,000, below its all-time high from earlier this year

HashKey Holdings saw its shares decline roughly 5% during its first day of trading in Hong Kong. The crypto exchange raised $206 million through its initial public offering priced at HK$6.68 per share.

The stock opened at HK$6.7 and briefly rose to HK$7.11 during morning trading. By midday, shares had slipped to around HK$6.34, marking a cautious reception from investors.

The company priced its IPO toward the upper end of its proposed range between HK$5.95 to HK$6.95. HashKey attracted nine cornerstone investors including UBS Asset Management Singapore, Fidelity, and CDH.

HashKey controls approximately three-quarters of Hong Kong’s licensed crypto trading market. The exchange processed more than $81.8 billion in trading volume during 2024, according to its prospectus.

The company holds a license to operate as a virtual asset trading platform in Hong Kong. As of September 2024, its platforms supported 80 different tokens.

Fee Strategy Drives Mounting Losses

HashKey has pursued an ultra-low fee strategy with charges largely below 0.1%. This approach has kept revenue growth behind operating costs tied to licensing, custody, compliance, and infrastructure.

The exchange reported cumulative net losses of about $385 million between 2022 and mid-2025. Monthly cash burn remains elevated despite growth in users and trading activity.

In the first six months of 2025, HashKey recorded a net loss of $65 million. This compared to a loss of $99.2 million during the same period in 2024.

The company’s revenue growth has not kept pace with its expanding operations. Investors appear to be waiting for evidence that fees can increase or higher margin services can contribute meaningfully to profitability.

Market Position and Regulatory Framework

HashKey has withdrawn from offshore retail markets and closed its Bermuda-registered entity. The company is now increasingly tied to Hong Kong’s regulatory framework.

This makes the exchange’s outlook more dependent on local policy and institutional participation. Growth prospects rely on Hong Kong’s capital market activity rather than broader crypto cycles.

Xiao Feng, chairman and CEO of HashKey, said listing on the Hong Kong exchange represents greater responsibility. He stated the company will continue upgrading infrastructure and bolstering capabilities across security, custody, and compliance.

HashKey rival OSL also saw its shares decline on the same day, dropping 4.29% to HK$16.96 by midday. OSL shares have gained 10.7% over the past month and 30.5% over the past six months.

The debut occurred as Bitcoin traded around $87,000, below the record high reached earlier this year. The broader crypto market has experienced cooling following previous highs.

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