Vienna-based Bitpanda, a leading crypto trading platform financially backed by PayPal co-founder and billionaire investor, Peter Thiel, is reportedly examining a range of strategic possibilities including a prospective initial public offering (IPO) in Frankfurt.
The platform is known to engage in talks with reputable financial institutions like Citigroup Inc. and JPMorgan Chase & Co, according to a report by Bloomberg.
Bitpanda Valuation May Exceed $4 Billion
Should an IPO occur, Bitpanda’s estimated value could reach or surpass $4 billion, says sources privy to the situation. However, the platform may eventually decide against any transaction, revealing that an IPO is only one of the options under consideration. Neither Citi nor JPMorgan spokespersons have been forthcoming on the matter, and Bitpanda has not issued an official statement or responded to requests for more information.
Established in 2014, Bitpanda provides various trading services such as cryptocurrencies, equity derivatives, and commodities. In August of last year, the platform reached a valuation of $4.1 billion due to a successful funding round that generated $263 million, attracting notable investors like Valar Ventures by Thiel, entrepreneur Alan Howard, and REDO Ventures.
Potential Record Profit in 2024
Bitpanda’s financial outlook appears optimistic as it anticipates setting new profit records in 2024. In just Q1 2021, the platform generated revenue exceeding €100 million (approximately $108 million), symbolizing a significant shift from the previous year when it recorded a pre-tax profit of €13.6 million but also experienced losses over €130 million in 2022.
The platform has made considerable strides in improving its user interfaces, illustrated by its announcement in June of furnishing its German clientele with Deutsche Bank IBANs to facilitate real-time transfers in and out of brokerage accounts.
This move comes amidst the flourishing cryptocurrency market, demonstrated by the substantial progress of the most significant cryptocurrency, currently nearing its all-time high of $73,700 attained in March 2024.
After U.S regulators permitted Bitcoin exchange-traded funds (ETFs), interest in digital assets among potential investors has surged. While a moderate correction period followed this growth, the market has been in recovery mode recently.
The market’s optimism is further fueled by speculations that the pro-crypto Republican candidate Donald Trump might prevail in the forthcoming U.S presidential elections. Trump’s pledge towards new regulations and a supportive stance for innovation and growth in the crypto space has market analysts forecasting a rally towards year-end that could catapult Bitcoin to new peaks.
The total crypto market cap currently sits at a robust $2.3 trillion, symbolizing a significant recovery from last week’s $200 billion dip.
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