Share this article
Crypto exchange HashKey's shares fall, recover on trading debut in Hong Kong
Investors questioned whether Hong Kong’s dominant licensed exchange can turn surging volumes and regulatory advantage into sustainable profits.
By Sam Reynolds, AI Boost
Updated Dec 17, 2025, 1:06 p.m. Published Dec 17, 2025, 2:36 a.m.
Make us preferred on Google
What to know:
- HashKey Holdings' shares fell on their Hong Kong trading debut, highlighting investor caution despite the company's dominant market position.
- The shares recovered much of the decline to close 0.15% below the IPO price.
- The company reported significant losses due to its ultra-low fee strategy, which has not kept pace with operating costs.
- HashKey's growth is increasingly tied to Hong Kong's regulatory framework, affecting its market outlook.
HashKey Holdings’ shares fell about 5% in their Hong Kong trading debut, 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 IPO price and slid to around HK$6.34 by mid-morning. The decline followed the release of prospectus disclosures earlier in December, showing heavy losses but rapid growth in users and activity. They recovered to close at HK$6.67, just 0.15% below the IPO price.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The IPO comes at a time when bitcoin has pulled back from its all-time high earlier this year, to trade around $87,000, taking down the valuation of most crypto-linked stocks globally.
HashKey controls roughly 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 largely below 0.1%, has kept revenue growth far behind operating costs tied to licensing, custody, compliance, and infrastructure. The exchange reported cumulative net losses of about $385 million (HK$3.0 billion) between 2022 and mid-2025, with a monthly cash burn that remains elevated.
Investors appear to be weighing whether scale alone can fix that imbalance. Early trading suggests the market is reserving judgment, waiting for clearer evidence that fees can rise or that higher margin services can make a meaningful contribution.
The weak debut could also reflect a narrower growth narrative. HashKey has withdrawn from offshore retail markets, closing its Bermuda-registered entity, and is increasingly tied to Hong Kong’s regulatory framework, making its outlook more dependent on local policy, institutional participation, and capital market activity than broader crypto cycles.
HashKey is a competitor to CoinDesk's parent company, Bullish.
(UPDATE, Dec. 15, 02:52 UTC): Adds additional broader market context.
(UPDATE, Dec. 15, 13:06 UTC): Adds rebound in headline, closing price in second paragraph.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
More For You
‘Bitcoin to zero’ searches spike in the U.S., but the bottom signal is mixed
Google Trends data shows the term hit a record high in the U.S. this month, though global interest has fallen since peaking in August.
What to know:
- U.S. searches for “bitcoin zero” on Google hit a record high in February as BTC slid toward $60,000 after hitting a peak in October.
- In the rest of the world, searches for the term peaked in August, suggesting fear is concentrated in the U.S. rather than worldwide.
- Similar U.S. search spikes in 2021 and 2022 coincided with local bottoms.
- Because Google Trends measures relative interest on a 0-to-100 scale amid a much larger bitcoin user base today, the latest U.S. spike signals elevated retail anxiety, but does not reliably guarantee a clean contrarian reversal.
Top Stories
