Cryptocurrency Exchange Eyes $4 Billion IPO Amid Market Resurgence

A cryptocurrency exchange, backed by billionaire investor Peter Thiel, is exploring strategic options that may include launching an initial public offering (IPO) in Frankfurt.

Engaging with top-tier financial institutions such as Citigroup and JPMorgan, the Vienna-based crypto exchange Bitpanda is contemplating several options, from an IPO to a potential acquisition, with discussions suggesting the exchange could be valued at $4 billion or more.

While a transaction might take shape in the upcoming year, sources indicate that discussions are fluid, and the company may ultimately opt against any deal.

This move comes amid a renewed enthusiasm in the cryptocurrency sector, significantly influenced by the recent approval of spot Bitcoin ETFs by U.S. regulators. Market optimism is further buoyed by the prospect of a pro-crypto Republican candidate, Donald Trump, winning the upcoming presidential election, heightening interest from potential investors in digital asset firms.

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Founded in 2014, Bitpanda enables users to trade a variety of assets, including cryptocurrencies, equity derivatives, and commodities. The startup achieved a valuation of $4.1 billion in August 2021, following a substantial $263 million funding round led by Thiel’s Valar Ventures, alongside contributions from notable investors like Alan Howard and REDO Ventures.

In a strong display of financial performance earlier this year, Bitpanda projected significant profits for 2024, reporting over €100 million ($108 million) in revenue during the first quarter alone. The company successfully turned around losses exceeding €130 million in 2022, posting pre-tax profits of €13.6 million in 2023.

Alexander Stefanov