Peter Thiel-backed crypto exchange Bitpanda explores options

Billionaire Peter Thiel. Photo / GaGe Skidmore

Bitpanda GmbH, a cryptocurrency trading platform backed by billionaire Peter Thiel, is exploring options including a potential initial public offering in Frankfurt, according to people familiar with the matter.

The Vienna-based company is working with Citigroup Inc. and JPMorgan Chase and Co. and could also consider selling itself, the sources said. Any deal could value Bitpanda at US$4 billion ($6.6b) or more, one of the people said.

Should Bitpanda decide to proceed with a deal, it’s likely to happen next year. Deliberations are ongoing and the company could decide against a transaction, the sources said. Representatives for Citi and JPMorgan declined to comment, while Bitpanda didn’t respond to requests for comment.

Cryptocurrencies have rallied this year after United States regulators approved spot Bitcoin exchange traded funds, making digital-asset companies more attractive to prospective buyers. Market anticipation of a victory by pro-crypto Republican candidate Donald Trump in the US presidential election also fuelled the gains.

Founded in 2014, Bitpanda offers retail trading in crypto, equity derivatives, and commodities. The Austrian start-up was valued at US$4.1b in August 2021 when it raised US$263 million from investors including Thiel’s Valar Ventures, billionaire financier Alan Howard and REDO Ventures.

Bitpanda in May said it expects a record profit in 2024 with the company netting more than €100m ($180.7m) of revenue in the first three months of this year. It booked a €13.6m pre-tax profit last year after more than €130m of losses in 2022.

In June, the company said it will provide Deutsche Bank IBANs for clients in Germany to facilitate real-time transfers to and from brokerage accounts.

- Washington Post