Bitpanda GmbH, the Vienna-based crypto trading platform backed by billionaire investor and PayPal co-founder Peter Thiel, is reportedly considering a series of strategic options, including a possible 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
According to the reportIf Bitpanda proceeds with a possible IPO or any similar transaction, it could be valued at around $4 billion or more, sources familiar with the matter indicate.
Current deliberations suggest that even if an IPO is on the table, the company may ultimately choose not to pursue any transactions. Representatives for Citi and JPMorgan declined to comment, and Bitpanda did not respond to requests for additional information.
Founded in 2014, Bitpanda offers a wide range of commercial servicesincluding cryptocurrencies, equity derivatives and commodities.
The startup was valued at $4.1 billion as of August 2021 after successfully raising $263 million from a group of high-profile investors, including Thiel’s Valar Ventures, billionaire financier Alan Howard, and REDO Ventures.
From losses to profits
Recent financial reports indicate that Bitpanda is forecasting record profit in 2024. The company generated over 100 million euros (approximately $108 million) in 2024. income in the first quarter of this year alone.
This is a significant turnaround from the previous year, when the company recorded a pre-tax profit of €13.6 million after suffering losses in excess of €130 million in 2022.
Additionally, in a bid to enhance its offering, Bitpanda announced in June that it would provide Deutsche Bank IBANs to its customers in Germany, facilitating real-time transfers to and from brokerage accounts. This decision should rationalize transactions and improve the customer experience.
Interest in Bitpanda’s potential IPO comes as the cryptocurrency market is seeing significant momentum, led by the market’s largest cryptocurrency closing in on its March 2024 all-time high of $73,700.
Cryptocurrencies Overall Rallied After US Regulators Approved Bitcoin Spot exchange traded funds (ETF), making digital assets increasingly attractive to potential investors, followed by a notable mid-year correction period, and now the broader digital asset ecosystem is rebounding.
Additionally, speculation surrounding a possible victory for the pro-crypto Republican candidate Donald Trump in the run-up to the US presidential election further fueled market optimism.
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 recovery expected in during the last 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 cap chart, which currently stands at $2.3 trillion after losing nearly $200 billion in value at the end of the year. last week.
Featured image of DALL-E, chart by TradingView.com
