Crypto exchange HashKey sees volatile debut as shares fall, then recover in Hong Kong.

HashKey Holdings’ Hong Kong trading debut drew a cautious response from investors, with the stock slipping early before paring losses, as questions linger over whether the city’s largest licensed crypto exchange can convert scale and regulatory positioning into durable profits.

Shares opened below the IPO price and fell roughly 5% to about HK$6.34 in mid-morning trade. The decline eased later in the session, with the stock closing at HK$6.67, just 0.15% under the offer price. The initial weakness followed prospectus disclosures earlier in December that highlighted heavy losses alongside rapid growth in users and trading volumes.

The timing of the listing also weighed on sentiment. Bitcoin has pulled back from its record highs earlier this year and was trading near $87,000, a backdrop that has pressured valuations across crypto-related equities globally.

HashKey commands an estimated three-quarters of Hong Kong’s licensed crypto trading market and processed more than $81.8 billion (HK$638 billion) in transactions in 2024, according to its prospectus. Yet the exchange’s ultra-low fee structure—largely below 0.1%—has limited revenue generation while operating expenses tied to compliance, custody, licensing and infrastructure remain substantial.

From 2022 through mid-2025, the company reported cumulative net losses of roughly $385 million (HK$3.0 billion), with cash burn still elevated. Investors appear to be weighing whether greater scale can eventually improve margins, or if meaningful profitability will require higher fees or a shift toward higher-margin services.

The muted debut may also reflect a narrower growth outlook. HashKey has exited offshore retail markets, shutting down its Bermuda-registered entity, and is increasingly reliant on Hong Kong’s regulatory framework. That focus makes future performance more dependent on local policy decisions, institutional adoption and capital markets activity than on broader global crypto cycles.

HashKey competes with Bullish, the parent company of CoinDesk.