Shares of HashKey Holdings fell about 5% in their trading debut in Hong Kong, a muted reception that underscores investor caution toward the exchange’s business model despite its dominant position in the city’s regulated crypto market.
The stock opened below its initial public offering price and fell to around HK$6.34 by mid-morning. The drop came after the publication of information brochures in early December, which showed large losses but rapid growth in users and activity.
The IPO comes at a time when Bitcoin has retreated from its all-time high earlier this year, to trade around $87,000, reducing the valuation of most cryptocurrency-linked stocks globally.
HashKey controls about three-quarters of Hong Kong’s licensed crypto trading market and processed more than $81.8 billion (HK$638 billion) in volume in 2024, according to the prospectus.
But its ultra-low fee strategy, with charges well below 0.1%, has kept revenue growth well behind operating costs tied to licensing, custody, compliance and infrastructure. The exchange reported cumulative net losses of around US$385 million (HK$3 billion) between 2022 and mid-2025, with monthly cash burn remaining high.
Investors appear to be weighing whether scale alone can address that imbalance. Early trading suggests the market is reserving judgment, waiting for clearer evidence that rates may rise or that higher-margin services may make a significant contribution.
The weak debut could also reflect a narrower growth narrative. HashKey has withdrawn from offshore retail markets, closed its Bermuda-registered entity, and is increasingly tied to Hong Kong’s regulatory framework, making its prospects more dependent on local politics, institutional participation, and capital market activity than broader crypto cycles.
HashKey is a competitor of CoinDesk’s parent company Bullish.
(UPDATE, December 15, 2:52 UTC): Add additional broader market context.
