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Bitcoin and Ethereum Fall as HashKey Raises $206M in Hong Kong IPO

Bitcoin and Ethereum Fall as HashKey Raises $206M in Hong Kong IPO

HashKey Holdings’ market debut in Hong Kong saw shares drop 5% amid heavy losses and dependence on local regulation, despite a dominant position in licensed crypto trading.

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Fact Check
The statement is overwhelmingly supported by multiple high-authority primary sources. Major international news agencies like Reuters and Bloomberg both report that HashKey raised funds in this specific range through its Hong Kong IPO. Several reports, including those from Bloomberg, Yahoo Finance, and an initial Reuters article, explicitly state the figure as $206 million. A subsequent Reuters report provides a more precise figure of HK$1.61 billion, which it approximates to $207 million. This minor discrepancy is easily attributable to currency conversion rounding and does not represent a meaningful contradiction. The consistency across numerous credible financial and crypto-focused news outlets creates a strong consensus. Sources that don't confirm the exact amount either discuss the company's fundraising targets before the IPO's completion or confirm the company's intention to go public, which provides relevant context but does not challenge the final reported figures. There is no conflicting evidence suggesting a different amount was raised or that the IPO did not occur.
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Summary

Major cryptocurrencies declined, with Bitcoin down 2.82% and Ethereum down 3.88%. HashKey Holdings priced its Hong Kong IPO at HK$6.68 per share, raising HK$1.6 billion ($206 million), but opened below IPO price and fell about 5% to HK$6.34 on its first day of trading. The prospectus revealed cumulative net losses of roughly $385 million from 2022 to mid-2025 due to an ultra-low fee strategy under 0.1%, which lags behind operating costs associated with licensing, custody, and compliance. HashKey, controlling about 75% of Hong Kong’s regulated crypto market and processing $81.8 billion in volume in 2024, has withdrawn from offshore retail markets and is increasingly dependent on Hong Kong’s regulatory framework for growth.

Terms & Concepts
  • Stablecoin: A cryptocurrency pegged to a stable asset, such as a fiat currency, to reduce price volatility.
  • IPO (Initial Public Offering): The process by which a private company offers shares to the public for the first time.
  • Yen stablecoin: A stablecoin pegged to the Japanese yen, designed to maintain its value equal to the fiat currency.