Bitpanda Exploring Potential IPO in Germany: Report

Austrian cryptocurrency exchange Bitpanda is reportedly eyeing a potential initial public offering (IPO) in Frankfurt, Germany.

It will supposedly value the exchange at no less than $4 billion if it materializes.

Crypto Exchange Has Tapped Citigroup and JP Morgan

News of the potential move was first reported by Bloomberg on October 28, with the business publication quoting unnamed sources for its story.

According to the report, an IPO is one of several options the exchange is considering, and Citigroup and JP Morgan have been appointed to advise on the process. However, nothing has been set in stone just yet, with Bloomberg suggesting that the company could also decide against going ahead with the plan.

Bitpanda was founded in 2014 to offer crypto retail trading and equities derivatives. It raised more than $260 million in a 2021 funding round that included participation from billionaire investor Peter Thiel’s Valar Ventures. At the time, the company was valued at $4.1 billion.

With the crypto market rallying this year following the approval of Bitcoin and Ethereum spot ETFs by the U.S. Securities and Exchange Commission (SEC), operations like Bitpanda have prospered.

The company recently stated that it anticipates record profits in 2024. In the first quarter of the year, it raked in about $108 million. In 2023, it made more than $14 million in pre-tax profits, coming off a horrendous performance in 2022, when it reported losses amounting to $140 million.

Bitpanda’s Growth

The company has been working to strengthen its foothold in the European crypto space. In June, it entered an alliance with German financial giant Deutsche Bank to implement real-time payment solutions for users in the country.

The deal involved integrating Bitpanda into the German International Bank Account Numbers (IBAN) system through an API. It hoped this would improve the speed and reliability of transactions in the region.

Further, earlier in the year, Bitpanda partnered with Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), to offer crypto custody services. The deal came against a backdrop of increasing demand for crypto assets among institutional and corporate clients in Germany.

The firm is also working with American crypto exchange Coinbase to help the latter grow its European footprint. The collaboration, ratified in May 2023, saw Coinbase become a liquidity provider for Bitpanda’s “investing-as-a-service” division.