Bitpanda exploring possible IPO in Germany: report

Austrian cryptocurrency exchange Bitpanda is considering a possible initial public offering (IPO) in Frankfurt, Germany.

It will reportedly 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 Oct. 28, with the business publication citing 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 yet, with Bloomberg suggesting that the company could also decide not to go ahead with the plan.

Bitpanda was founded in 2014 to provide retail trading of cryptocurrencies and equity derivatives. It raised more than $260 million in a funding round in 2021 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 recovering this year following the approval of Bitcoin and Ethereum spot ETFs by the US Securities and Exchange Commission (SEC), operations like Bitpanda have thrived.

The company recently said it expects record profits in 2024. In the first quarter of the year, it raised about $108 million. In 2023, it made more than $14 million in pre-tax profits, with a horrible performance in 2022, when it posted losses worth $140 million.

The growth of Bitpanda

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

The deal involved Bitpanda’s integration with the German International Bank Account Number (IBAN) system via an API. He hoped that this would improve the speed and reliability of transactions in the region.

Also, earlier this 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 growing demand for crypto assets among institutional and corporate clients in Germany.

The company is also working with US crypto exchange Coinbase to help it grow its European footprint. The partnership, ratified in May 2023, saw Coinbase become a liquidity provider for Bitpanda’s “investment as a service” division.

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