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Shares of HashKey Holdings dropped by approximately 5% during their debut trading session in Hong Kong, reflecting a subdued response that highlights investor hesitance towards the exchange’s business model, despite its leading role in the city’s regulated cryptocurrency market.
The stock opened below its IPO price, falling to about HK$6.34 by mid-morning. This downturn followed the release of prospectus details earlier in December, revealing significant losses even as user numbers and activities surged.
HashKey commands around three-quarters of the licensed cryptocurrency trading market in Hong Kong, having processed over $81.8 billion (HK$638 billion) in transaction volume in 2024, as reported in the prospectus.
However, its ultra-low fee structure, with charges primarily under 0.1%, has caused revenue to lag far behind the operating costs associated with licensing, custody, compliance, and infrastructure. The exchange has reported cumulative net losses of roughly $385 million (HK$3.0 billion) from 2022 to mid-2025, with an ongoing high monthly cash burn rate.
Investors seem to be evaluating whether simply scaling up can address this discrepancy. Early trading indicates that the market is cautiously withholding judgment, awaiting clearer signs that fee increases or enhanced margin services can provide substantial support.
The lackluster debut also reflects a more constrained growth narrative. HashKey has withdrawn from offshore retail markets, shutting down its Bermuda-registered entity, and is increasingly anchored to Hong Kong’s regulatory regime, making its future prospects more reliant on local policies, institutional engagement, and capital market dynamics rather than broader cryptocurrency trends.
HashKey competes with Bullish, the parent company of CoinDesk.
