Bitpanda considers IPO or sale on the table amid crypto market surge

Peter Thiel-backed cryptocurrency trading platform Bitpanda GmbH is considering a potential IPO in Frankfurt. 

According to a recent Bloomberg report, the crypto trading company is working with Citigroup and JPMorgan Chase and Co. It is also considering the option of selling itself according to Bloomberg’s sources.

The incognito person of contact said that any deal could close with Bitpanda at $4 billion value or even more.

Bitpanda is still to make a final decision

Any deal that Bitpanda decides to proceed with will most likely happen in the next year. However, the company’s decision is still in the early stages, and it can also opt not to proceed with the potential transactions.

Although plans are still in preliminary stages, timelines for any possible moves appear set for 2025.

This comes as cryptocurrency has enjoyed a fine run this year after US regulators gave a nod to spot Bitcoin exchange traded funds (ETFs), which made digital asset firms more attractive to prospective buyers.

The cryptocurrency community is also looking forward to victory for the Republican candidate Donald Trump, who is pro-crypto, which also spurred the gains. Polymarket data currently shows Trump ahead with 66.1% compared to Kamala Harris’ 34%, just a week to the US presidential election.

Bitpanda was formed in 2014 and offers retail trading in crypto, equity derivatives, and commodities. The Austrian startup achieved a $4.1 billion valuation after raising $263 million from its investors including Thiel’s Valar Ventures, billionaire financier Alan Howard and REDO Ventures.

Earnings performance favors Bitpanda’s plans

In May, Bitpanda indicated it expected a record profit in 2024 with the company netting more than $108 million of revenue during the quarter of 2024.

According to Bloomberg, it recorded a €13.6 million profit before tax in 2023, a reversal from the more than €130 million losses in 2022.

In June, Bitpanda revealed it would provide Deutsche Bank IBANs for clients in Germany to facilitate real-time transfers to and from brokerage accounts, according to a Reuters article.

This comes as the crypto community previously battled to find banking partners, especially after the collapse of Silvergate Capital Corp, Signature Bank, and Silicon Valley Bank, which had a high concentration of crypto-related clients.

However, with this latest move of the crypto industry moving closer to mainstream finance, Deutsche was expected to provide Bitpanda users in Germany with local bank account numbers.

Reports have suggested that the strategic partnership has made it more appealing to investors as the company considers and IPO.

Current market conditions also seem to favour the exchange’s IPO option, particularly with growing regulatory clarity in the digital asset industry.

Bitpanda’s collaboration with JP Morgan and Citigroup is therefore expected to guide the company through its next steps.