Bitkub Capital Group Holdings, the leading force behind Thailand’s most prominent cryptocurrency exchange, is setting the stage for an initial public offering (IPO) by bringing financial advisers on board.
This move aligns with its strategic vision to enhance its market presence and secure additional funding by going public on the Stock Exchange of Thailand (SET) by 2025, as confirmed by CEO Jirayut Srupsrisopa in a discussion with Bloomberg.
In a bid to strengthen its workforce, Bitkub is looking to recruit 1,000 more employees, aiming to double its current team size by 2025.
This decision marks a shift from the previous years, during which the company reduced its staff by 6%.
This expansion effort underlines Bitkub’s ambitious growth plans despite the workforce reduction in 2022 and 2023.
The announcement of Bitkub’s IPO was initially hinted at in a shareholder letter in 2023, albeit without much detail.
With its headquarters in Bangkok, Bitkub dominates the Thai cryptocurrency exchange market, boasting a 77% share as of December 2023, as per HashKey’s analysis.
The exchange sees about $30 million in daily transactions.
Thailand’s cryptocurrency scene is witnessing a surge, with over 13 million users as of 2023, which is expected to grow significantly in the coming years.
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Amid this expanding market, Bitkub faces competition from local and international players, including the recent entrance of Binance’s local subsidiary in January 2024 and significant moves by Kasikornbank, one of Thailand’s largest banks.
Bitkub’s journey towards an IPO also follows a strategic partnership where Asphere Innovations acquired a 9.2% stake in Bitkub Online, the exchange’s operational arm, for 600 million baht ($16.5 million).
This collaboration is anticipated to bolster Bitkub Online’s valuation, particularly as its trading volumes approach the peak levels last seen during the crypto bull market in 2021.
Bitkub Online significantly contributes to Bitkub Capital’s profitability, accounting for about 80% of its earnings.
However, the path has not been without challenges. In 2022, a major acquisition deal by SCB X for a 51% stake in Bitkub Online was called off amid growing regulatory scrutiny.
This backdrop illustrates the evolving dynamics within Thailand’s cryptocurrency landscape, highlighting Bitkub’s strategic moves to consolidate its leadership while navigating through regulatory and competitive pressures.
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