Bitpanda Considers IPO in Germany, Valuation at $4 Billion

Austrian cryptocurrency exchange Bitpanda is reportedly exploring the possibility of an initial public offering (IPO) in Frankfurt, Germany. If successful, this move could value the exchange at no less than $4 billion.

Advisory Support from Citigroup and JP Morgan

The news of Bitpanda's IPO considerations was initially reported by Bloomberg, citing unnamed sources. The exchange has engaged Citigroup and JP Morgan to provide advisory services for the potential IPO. However, the decision is not finalized, and there is a possibility that Bitpanda may choose to abandon the plan.

Background on Bitpanda

Founded in 2014, Bitpanda offers services for crypto retail trading and equities derivatives. The company raised over $260 million in a funding round in 2021, which included investments from billionaire Peter Thiel’s Valar Ventures, leading to a valuation of $4.1 billion at that time.

Recent Performance and Market Conditions

The cryptocurrency market has seen a rally this year, particularly following the approval of Bitcoin and Ethereum spot ETFs by the U.S. Securities and Exchange Commission (SEC). Bitpanda has benefitted from this trend and recently projected record profits for 2024, reporting approximately $108 million in revenue during the first quarter. In 2023, the company posted over $14 million in pre-tax profits, recovering from a loss of $140 million in 2022.

Strengthening European Presence

Bitpanda has been actively working to enhance its position in the European cryptocurrency market. In June, the company formed a partnership with Deutsche Bank to implement real-time payment solutions for users in Germany. This collaboration aims to integrate Bitpanda into the German International Bank Account Numbers (IBAN) system, improving transaction speed and reliability.

Additionally, Bitpanda partnered with Landesbank Baden-Württemberg (LBBW), Germany's largest federal bank, to provide crypto custody services, responding to the rising demand for crypto assets among institutional clients. The firm is also collaborating with American exchange Coinbase to expand its European operations.