There is movement in the IPO market. Bitpanda, Europe’s leading crypto trading platform is on course for a potential listing in Frankfurt. The basic „Intention to Float“ was announced on Tuesday via Bloomberg, revealing that Citigroup and JP Morgan have already been appointed to explore options. This typically includes the option of selling to a strategic investor, though a listing on the Frankfurt exchange appears to be favoured, despite Bitpanda’s founders remaining quiet about their specific intentions.

For a startup from Vienna, a listing in the German-speaking region makes sense, even if its strong market position could open doors to other exchanges. However, in the US, Bitpanda would be just one name among giants like Coinbase and Crypto.com. The initially suggested indicative valuation of over $4 billion doesn’t seem overstated, as it matches the valuation achieved in mid-2021. For Bitpanda, as with other fintech companies, the initial market soundings aim to validate the valuation from the hype years, and then see what additional growth is possible.

Bitpanda has certainly experienced significant growth over the past two years. By the end of the second quarter, it surpassed 5 million retail customers, with 500,000 new registrations in that quarter alone. The million-customer mark was first reached in 2019. But the Vienna-based company hasn’t disclosed how many of its registered customers are actually active monthly traders.

There are definitely enough customers to keep Bitpanda profitable: in the first quarter, revenue exceeded 100 million euros, with the second quarter expected to be even stronger. By comparison, in 2023, Bitpanda recorded pre-tax earnings of just under 14 million euros on revenues of 148 million euros. That said, the substantial spending on marketing and sponsorship has likely tempered profit growth somewhat.

Bitpanda has positioned itself in the premium category as a partner of Bayern Munich, AC Milan, and DAZN, making the brand visible through TV commercials. This significant investment could pay off well for a retail-oriented brand aiming to go public.

A strong selling point in the equity story would be Bitpanda’s diversified strategic positioning, including its digital assets-as-a-service offerings for banks and other trading platforms. With the introduction of the Markets in Crypto-Assets Regulation (MiCAR), there is also additional sales potential in the retail segment.

The IPO pipeline is filling up. If the macro environment with lower interest rates persists, risk assets will become more attractive – a benefit for Bitpanda. Frankfurt could certainly welcome a tech listing like this.