Hashkey Group Aims to Raise $100-$200M at $1B Valuation, Eyes Crypto Expansion
- Crypto investment firm Hashkey Group aims to raise around $100 million to $200 million at a valuation of $1 billion.
- The numbers are subject to change as per the outcome of the talks, which are being held behind closed doors, a source said.
- Hashkey Group has one of the only licensed digital asset trading platforms in the city-state of Hong Kong.
- There are also plans to launch at least two liquid funds and tap the opportunities in the secondary market.
The digital asset space is seen as a lucrative industry by many, and many institutional players are trying to capitalize on the booming blockchain and crypto space. Prominent Hong Kong-based investment firm Hashkey Group confirmed that it plans to raise around $100 million to $200 million at a valuation of close to $1 billion. This announcement comes at a time when Hong Kong authorities are aiming to turn the region into a crypto hub, presenting entrepreneurs with lucrative opportunities.
As per a report from Bloomberg, Hong Kong’s push into the digital asset space has allowed local crypto companies to capitalize on the booming industry, and this includes the Hashkey Group as well. It is important to mention here that the investment firm, which also operates in areas like venture capital and crypto trading, has one of the city’s only two licensed digital asset trading platforms.
Hashkey Group operates in multiple activities in the crypto region, including exchange, brokerage, VC, crypto custody, and Web3 infrastructure. Moreover, Hashkey Pro is the first exchange to be licensed by the Hong Kong Securities and Exchange Commission (SEC), followed by OSL Exchange.
Another important fact about Hashkey is that it was an early corporate investor in Ethereum (ETH), the world’s second-largest blockchain network. While the firm is stated to have raised $100-$200 million at a $1 billion valuation, these numbers can change in the near future depending on the situation, as per a source familiar with the matter. The talks are being held behind closed doors.
There are also plans to launch at least two liquid funds, as per a report, and according to the CEO of HashKey Capital and HashKey Singapore, Deng Chao, the goal is to tap the opportunities in the secondary market. More importantly, in September last year, the investment arm of the company was granted the authority to operate a portfolio made up of 100% crypto by the Hong Kong Securities and Futures Commission (SFC).
The executive further added that the difference between what sellers ask for and what buyers intend to bid for—also known as the bid-ask spread for secondary transactions—is one of the “wildest” in the crypto industry. The Hashkey CEO added that “brand name” crypto assets are floating at a 40% discount to their previous rounds, and his company aims to capitalize on the same.
Another important event to mention here is that the firm recently received in-principle approval for the Capital Markets Services (“CMS”) license from the Monetary Authority of Singapore (MAS). The local arm of Hong Kong-based firm is now a licensed fund management company (LFMC), and the CMS license will allow the firm to conduct fund management services from Singapore.
Hong Kong is gradually turning into a crypto hub, and the lawmakers have decided to issue licenses to virtual digital asset service providers and allow retail investors to purchase Bitcoin (BTC) and Ether (ETH), the two largest digital assets, starting June 1. The SFC wants Hong Kong operators to provide a compensation package to offset their risks. The parties involved can give feedback until March 23, 2023.
As reported earlier by Bitnation, a Hong Kong-based court recognized cryptocurrencies as property that could be held in trust. Judge Linda Chan said that crypto assets had property features. Advocates have noted that this decision from the judge could offer Hong Kong insolvency practitioners more clarity about digital assets.