HashKey Faces Sharp Losses Despite Massive Trading Growth
HashKey Group, Hong Kong’s largest licensed cryptocurrency exchange operator, posted a net loss of more than 151 million dollars in 2024. The result landed just as the company prepared for a highly anticipated IPO on the Hong Kong Stock Exchange. The announcement surprised many, especially because HashKey managed to process about 638.4 billion Hong Kong dollars, or roughly 82 billion dollars, in trading volume last year. This activity nearly doubled from the previous year, which showed how quickly crypto adoption grew across both retail and institutional users.
Low Fees Limit Revenue
HashKey captured nearly 75 percent of the city’s licensed crypto exchange market, yet its low fee model created an ongoing challenge. The platform charges under 0.1 percent per trade. While this structure attracted new users and helped the company expand market share, it did not generate enough income to cover growing operating costs.
The exchange also invested in several business lines, such as tokenization, staking, and Web3 events. However, these areas produced limited returns in 2024. Tokenization brought in less than one million dollars and Web3 events generated around 4.8 million dollars.
Key factors contributing to financial pressure included:
- Ultra low trading fees that reduced potential revenue
- Rising operating expenses as the platform scaled
- Slow growth from new business segments
- Weak performance from its global exchange in Bermuda
Analysts Expect Heavy Scrutiny Ahead of IPO
HashKey launched a global facing exchange in Bermuda, but activity there dropped sharply. Trading volume fell from about 23 billion dollars in early 2024 to nearly 1.4 billion dollars by late 2025 as the company cut marketing and waited for new payment channels.
The planned IPO aims to raise up to 500 million dollars. Market watchers believe the offering will serve as a test of investor confidence in crypto native firms. If HashKey secures strong demand, other Asian exchanges may follow with their own listings. The company must now show that dominance in trading activity can evolve into long term financial strength.
