HashKey Exchange Stumbles Out of Gate: Shares Drop 5% in Hong Kong Debut After $206 Million IPO

Hong Kong's crypto ambitions hit a speed bump as its flagship digital asset exchange stumbles on day one.

The Opening Bell Rings, The Price Ticks Down

The market delivered its verdict within the first trading session. Investors, fresh from pumping $206 million into the offering, watched the ticker slide south. It's a classic case of 'buy the rumor, sell the news'—or perhaps just a sober reminder that public markets have a different temperament than crypto's 24/7 casino.

Beyond the First-Day Jitters

This debut isn't just about a single stock price. It's a litmus test for a major financial hub's grand experiment. Hong Kong has been rolling out the red carpet for regulated crypto, positioning itself as a bridge between digital assets and traditional finance. A flagship exchange listing was meant to be a crowning moment, a signal of maturity.

Instead, the opening dip throws a bucket of cold water on the celebration. It forces a question: is this a temporary blip for a single company, or a sign of deeper skepticism about the profitability and scalability of even the most compliant crypto ventures?

The Long Game in a Volatile Arena

Let's be real—anyone in crypto knows that short-term price action is noise. The real story is whether a regulated, institutional-grade exchange can carve out a sustainable niche. The $206 million war chest from the IPO isn't for show; it's fuel for expansion, security upgrades, and battling for market share in Asia's fiercely competitive landscape.

The debut may have been wobbly, but the race is a marathon. Success won't be measured in day-one pops, but in building trust, liquidity, and a product suite that attracts the big money. After all, in traditional finance, sometimes you have to pay a hefty investment banking fee just for the privilege of watching your stock sink.

The gates are open. Now we see if the horses run.

TLDR

• HashKey Holdings’ shares dropped about 5% on their first trading day in Hong Kong after raising $206 million in their IPO
• The company controls roughly three-quarters of Hong Kong’s licensed crypto trading market and processed over $81.8 billion in volume in 2024
• HashKey reported cumulative net losses of about $385 million between 2022 and mid-2025 due to its ultra-low fee strategy below 0.1%
• The IPO attracted nine cornerstone investors including UBS Asset Management Singapore, Fidelity, and CDH
• The weak debut comes as Bitcoin trades around $87,000, below its all-time high from earlier this year

HashKey Holdings saw its shares decline roughly 5% during its first day of trading in Hong Kong. The crypto exchange raised $206 million through its initial public offering priced at HK$6.68 per share.

HashKey Holdings Limited is officially listed on the Main Board of HKEX!

As Asia’s first publicly listed digital asset company via an IPO in Hong Kong, this milestone marks the company's entry into a new stage of development and establishes a stronger foundation for its… pic.twitter.com/v22cmEntUX

— HashKey Group (@HashKeyGroup) December 17, 2025

The stock opened at HK$6.7 and briefly ROSE to HK$7.11 during morning trading. By midday, shares had slipped to around HK$6.34, marking a cautious reception from investors.

The company priced its IPO toward the upper end of its proposed range between HK$5.95 to HK$6.95. HashKey attracted nine cornerstone investors including UBS Asset Management Singapore, Fidelity, and CDH.

Shares of HashKey, the operator of Hong Kong’s largest licensed cryptocurrency exchange, climbed on their trading debut after an IPO that raised $206 million https://t.co/c57xRlkrSp

— Bloomberg (@business) December 17, 2025

HashKey controls approximately three-quarters of Hong Kong’s licensed crypto trading market. The exchange processed more than $81.8 billion in trading volume during 2024, according to its prospectus.

The company holds a license to operate as a VIRTUAL asset trading platform in Hong Kong. As of September 2024, its platforms supported 80 different tokens.

Fee Strategy Drives Mounting Losses

HashKey has pursued an ultra-low fee strategy with charges largely below 0.1%. This approach has kept revenue growth behind operating costs tied to licensing, custody, compliance, and infrastructure.

The exchange reported cumulative net losses of about $385 million between 2022 and mid-2025. Monthly cash burn remains elevated despite growth in users and trading activity.

In the first six months of 2025, HashKey recorded a net loss of $65 million. This compared to a loss of $99.2 million during the same period in 2024.

The company’s revenue growth has not kept pace with its expanding operations. Investors appear to be waiting for evidence that fees can increase or higher margin services can contribute meaningfully to profitability.

Market Position and Regulatory Framework

HashKey has withdrawn from offshore retail markets and closed its Bermuda-registered entity. The company is now increasingly tied to Hong Kong’s regulatory framework.

This makes the exchange’s outlook more dependent on local policy and institutional participation. Growth prospects rely on Hong Kong’s capital market activity rather than broader crypto cycles.

Xiao Feng, chairman and CEO of HashKey, said listing on the Hong Kong exchange represents greater responsibility. He stated the company will continue upgrading infrastructure and bolstering capabilities across security, custody, and compliance.

HashKey rival OSL also saw its shares decline on the same day, dropping 4.29% to HK$16.96 by midday. OSL shares have gained 10.7% over the past month and 30.5% over the past six months.

The debut occurred as Bitcoin traded around $87,000, below the record high reached earlier this year. The broader crypto market has experienced cooling following previous highs.