HashKey Holdings’ shares opened with a muted reception in Hong Kong, slipping about 5% on their trading debut and trading near HK$6.34 by mid‑morning. The weak start underscores investor caution about the exchange’s economics, even as it dominates the city’s regulated crypto market. Prospectus disclosures released earlier in December laid out the tension underlying the listing: rapid user and volume growth alongside heavy losses. HashKey says it processed more than $81.8 billion (HK$638 billion) of trading volume in 2024 and controls roughly three‑quarters of Hong Kong’s licensed crypto trading market. Yet the exchange’s ultra‑low fee model — fees largely below 0.1% — has left revenue growth lagging well behind operating costs tied to licensing, custody, compliance and infrastructure. The company reported cumulative net losses of about $385 million (HK$3.0 billion) from 2022 through mid‑2025, and a still‑elevated monthly cash burn, prompting investors to question whether sheer scale can ever close the gap. Early trading suggests the market is waiting for clearer evidence that HashKey can raise fees or expand higher‑margin services to improve profitability. Broader market conditions aren’t helping: bitcoin has fallen back from its earlier‑year highs to roughly $87,000, pulling down valuations across crypto‑linked equities globally. The stock’s subdued debut may also reflect a narrower growth narrative for HashKey after the company exited offshore retail markets (closing its Bermuda entity) and increasingly tied its fortunes to Hong Kong’s regulatory framework. That makes future growth more dependent on local policy, institutional adoption and capital‑markets activity than on broader crypto cycles. HashKey is also positioned as a competitor to Bullish, the parent company of CoinDesk. Investors and analysts will be watching upcoming quarterly results and any strategic moves to lift fees or accelerate higher‑margin offerings as signs that the business model can turn profitable. (Updated with broader market context.) Read more AI-generated news on: undefined/news

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