HashKey's Lossy IPO: Hong Kong's Crypto Gambit Begins

HashKey Holdings Limited has advanced its long-anticipated initial public offering (IPO) in Hong Kong by clearing its listing hearing with the Hong Kong Stock Exchange (HKEX) on December 1, 2025, marking a critical step toward becoming the city's first major publicly traded crypto exchange. The company, which operates Hong Kong's largest licensed virtual asset trading platform, reported a trading volume of US$81.9 billion in 2024 but continues to post net losses despite generating HK$721 million in revenue. As of August 2025, HashKey held HK$1.657 billion in cash and HK$592 million in crypto assets, including Bitcoin, Ethereum, and stablecoins.

The IPO, which could raise up to $500 million, has been supported by joint sponsors JPMorgan Chase, Guotai Junan International, and Guotai Haitong Securities. The funds will be allocated to technological upgrades, market expansion, and general corporate purposes. However, the company's financials have drawn scrutiny, with net losses reaching HK$506.7 million in the first half of 2025, compared to HK$772.6 million in the same period in 2024. Analysts attribute the losses to heavy investments in expansion, regulatory compliance, and tech development, which outpace revenue despite strong trading volumes.

Hong Kong's emergence as a crypto hub is central to HashKey's strategy. The city's regulatory framework, introduced in 2024, has positioned it as a testing ground for digital assets amid China's stringent bans on crypto activities. EY's 2025 IPO report highlighted Hong Kong's robust market, with proceeds from the HKEX reaching US$36 billion-nearly tripling the global share of Chinese mainland and Hong Kong IPOs to 33%. The exchange's new pricing and allocation rules, including a 35% clawback cap and lock-in mechanisms, have improved investor confidence, with only 17% of IPOs trading below issue price on debut.

Market participants remain divided on HashKey's prospects. Proponents argue the IPO will provide much-needed capital to scale operations and solidify its leadership in the region's crypto ecosystem. Critics, however, question the sustainability of its business model, noting that high expansion costs and regulatory overheads could persist. Kenny Ng Lai-yin, a strategist at Everbright Securities International, warned that mainland China's crackdown on crypto speculation and volatile asset prices could impact the IPO's valuation.

The listing also aligns with broader trends in Asia's digital asset sector. Thai exchange Bitkub recently announced plans to pursue a Hong Kong IPO, targeting $200 million next year, as it shifts away from Thailand's underperforming market. Hong Kong's A+H dual-listing model has gained traction, with 20 mainland companies raising HK$170 billion in the city in 2025. EY's Jacky Lai emphasized that structural diversity and policy enhancements are strengthening Hong Kong's position as a global financial center.

HashKey's journey to public listing underscores the evolving landscape for crypto firms seeking regulated markets. As the company moves toward prospectus registration and pricing, its success could signal a shift in institutional confidence toward digital assets, particularly in regions with clear regulatory frameworks. For now, the IPO remains a test of Hong Kong's ability to balance innovation with investor protection in the volatile crypto space.