HashKey Leads Hong Kong Crypto Market but IPO Filing Shows Heavy Losses

HashKey has emerged as Hong Kong’s largest licensed crypto exchange, yet its IPO filing reveals a company spending heavily to maintain its position. Ultra-low fees have kept monetization in the basis-point range, leaving revenue unable to offset losses despite surging trading volumes.

According to filings published Monday, HashKey processed HK$638.4 billion (about $82 billion) in trading volume in 2024—roughly double the previous year—as its Hong Kong platform scaled up for both institutional and retail users. Yet fee income remained under 0.1%, reflecting a strategy focused on market share over profitability. While the firm commands around 75% of the Hong Kong market, its low-fee approach contributed to a net loss of more than $151 million (HK$1.18 billion) in 2024—a point likely to draw scrutiny from IPO investors.

HashKey’s Bermuda exchange, designed as a global-facing platform, saw trading collapse from $23 billion in H1 2024 to about $1.4 billion a year later, citing delayed on-off ramp capabilities and a strategic pullback in marketing.

The company has also pushed into tokenization, staking, and Web3 events to diversify revenue streams, though these lines remain minor. Tokenization brought in roughly $0.9 million (HK$7 million) in 2024, dropping to $140,000 (HK$1.1 million) in H1 2025. Web3 events, including a spring conference in Hong Kong, generated $4.8 million (HK$37.1 million) in 2024 and $3 million (HK$23.7 million) in H1 2025, making them one of HashKey’s larger non-trading revenue lines despite being small relative to core exchange operations.

The filing paints a picture of a dominant exchange with strong market traction, yet the company’s thin fees, limited new revenue lines, and declining offshore activity underscore the financial pressures ahead of its IPO. HashKey’s path to sustainable profitability remains a key question for investors evaluating the listing. The firm competes with Bullish, the parent company of CoinDesk.