Bitkub Online prepares for high-value IPO as Thai crypto market flourishes

66

12th April 2024 – (Bangkok) Bitkub Online, Thailand’s largest cryptocurrency exchange, is gearing up to go public next year with a valuation that could soar as high as $3 billion, according to Jirayut Srupsrisopa, CEO of Bitkub Capital Group.

The announcement came amidst a growing buzz surrounding Bitkub, which has emerged as a pivotal player in Thailand’s burgeoning crypto industry. The exchange, responsible for approximately 80% of the profits of its Bangkok-based parent company, has demonstrated significant growth and resilience in a volatile market.

Last year, the firm was valued at about 6 billion baht (approximately $165 million) during its Series A fundraising round. This robust valuation has set the stage for what could be a landmark initial public offering (IPO) in the region. Bitkub’s move to go public was initially hinted at in a 2023 shareholder letter, which, while not specifying a timeframe, underscored the firm’s strategic intentions.

Earlier this month, in a conversation with Bloomberg, Jirayut revealed that the company is in the advanced stages of planning for the IPO, which includes appointing financial advisors to steer the process. He further elaborated on the financial aspects in a LinkedIn message, indicating that based on a price-to-earnings ratio of 10 to 30, Bitkub’s valuation might range between $1 billion and $3 billion. However, the exact amount the company aims to raise through the IPO remains undisclosed.

Bitkub’s dominance in the Thai market is significant. The exchange holds a 9.2% ownership by Asphere Innovations and has positioned itself as a leader in a country that has shown considerable interest in digital currencies and blockchain technology. The Thai government and regulatory bodies have been somewhat forward-thinking in their approach to crypto regulation, which has allowed platforms like Bitkub to flourish.

This forthcoming IPO is not just a milestone for Bitkub but also a testament to the growing acceptance and integration of cryptocurrency businesses within the mainstream financial ecosystem in Southeast Asia. The move is expected to attract a plethora of investors looking to tap into the digital currency market, which continues to show promise despite its inherent fluctuations.

The planned public listing of Bitkub is also seen as a bellwether for other crypto firms in the region considering public offerings. The success of this IPO could potentially pave the way for more crypto-centric securities in Asian markets, offering both risks and rewards typical of this highly speculative investment space.